Healthy Rise in Mortgage Approvals

Tags: mortgages optimism

Mortgage approvals are an excellent indicator of how the housing market will trend in the months ahead. Nationally, approvals were at a two year high in December and this rise in approvals suggests a subsequent rise in amounts borrowed during 2012.

Additionally, many forecasters believe that house prices will remain fairly stable this year, giving an ideal opportunity for individuals to move within the market and taking advantage of the attractive borrowing rates available on both fixed rate, tracker and discount products.

There are positive signs that the local mortgage market will be stronger in 2012. The number of available products, the lowering of the loan to value ratio and the accessibility of funding have improved significantly with many lenders having funds to lend.

All borrowers should always research the mortgage market and ensure they are taking the most appropriate loan for their personal circumstances.

As a traditional lender, committed to the local market, we seek to ensure that we have a competitive range of products available throughout the year, to cater for the needs of all borrowers whether first time buyers, property investors or experienced second time buyers. Investing in property remains an excellent long term investment.

Cautious Optimism ahead

The UK and world economies are still making many of the television and news headlines. We all expected that 2012 would economically be a difficult year and at present the jury is out as to whether can avoid a double dip recession. The gross domestic product (GDP) figures for the last quarter of 2011 were minus 0.2% therefore we will officially be back in recession by April if the next quarterly figure is also negative.

The key to positive GDP remains a resolution of the crisis in the Eurozone, and every effort continues to be made by the countries involved to put together a workable solution. Looking forward, growth forecasts for 2013 are much more optimistic with positive GDP expected.

The other key economic event last month was the rating downgrade of several European countries by Moodys the rating agency. Significantly the second largest economy in the Eurozone, France, has now lost its triple A rating but crucially along with Germany, the U.K. remains rated as triple A, the highest status for any country’s economy. It is essential for the UK economy that this rating is maintained, as this allows the U.K. to borrow at a lower rate in world markets, which benefits us all.

Last week saw the Stock market index (FTSE) rise to a 6 month high and coupled with positive job news from the USA, these were positive signs indicating some improvement in both economies.

It remains to be seen if this is something to build on in the months ahead.