HSBC is making £500m available to homebuyers who have 10% deposits.
Martijn van der Heijden, head of mortgages at HSBC, said the housing crash seemed to be over and prices were recovering.
“It is a different picture today - houses prices seem to have bottomed and rates are low - and many of those who put off their purchase last year are starting to look around again,” he said.
Figures released today by the Bank of England showed that mortgage lending continued to improve last month.
The UK housing market showed further signs of stabilising during June with a 23 per cent jump in the number of mortgages taken out by people buying a home, figures revealed today.
Around 45,000 mortgages were advanced for house purchase during the month, the fifth consecutive monthly increase and the highest level for a year, the Council of Mortgage Lenders said.
There was also a steep rise in the number of first-time buyers getting on to the property ladder, with 17,200 mortgages taken out by people buying their first home, 26 per cent more than during May.
The RICS survey showed a continuing rise in interest from potential buyers, with new inquiries increasing for the ninth month in a row during July.
This is an excellent interview with a cunning buy to let investor, his main points being:
- Buy-to-let is a viable option if done correctly
- The ability to obtain finance is crucial
- You have to take a 10 year view on your investment, buy-to-let is not about flipping properties!
- Avoid illusionary discounted deals on new developments
Ta dah!
The Bank of England keeps interest rates on hold at 0.5% and decides not pump any more new money into the economy.
Bank of England, 1816
Read more: BBC Economy
Yesterday David Miles – author of a Government-commissioned report on the mortgage market in 2004 and a new member of the Bank of England’s Monetary Policy Committee – said that “expectations are crucial in the housing market and they look a bit better now than a few months ago … My hunch – and I put it no stronger than that – is that we have seen most of the overall aggregate house price falls.”
The Bank, meanwhile, said that the availability of mortgage credit was expected to rise over the next few months. Earlier this week the Nationwide Building Society’s house price index registered a 0.9 per cent rise in prices during May – three out of the last four months’ figures have shown an increase; the Halifax and other indices agree.
Source: The Independent
HM Revenue and Customs report a 7% rise in the number of residential properties sold in May, bringing the monthly total to its highest since October ‘08. This follows yesterday’s report by the British Bankers’ Association, claiming a steady six-month rise in mortgage approvals.
Sources: HMRC, BBA and Rat & Mouse
The Council of Mortgage Lenders figures show a 16% increase in lending for new homes in April, bringing the figure to its highest since October (although still 28% lower than this time 2008).
Take up of fixed-rate products increased further as the interest rate cycle has now reached its floor, according to new data from the Council of Mortgage Lenders. In April, 69% of borrowers took out fixed rate mortgages with an average rate of 4.83%, the highest share since June 2008.
Source: Council of Mortgage Lenders
Surveyors have reported “tentative signs” of a recovery in the property market, despite small numbers of homes being sold.
The Royal Institution of Chartered Surveyors (Rics) said members were “universally optimistic” about sales.
They also reported a big rise in interest from potential new buyers.
Source: RICS
British Banks are offering mortgages to first-time buyers in the Irish Republic at half the rate that they are available in the UK.
Halifax, part of the Lloyds Banking Group, is charging 2.74 per cent for a two-year fixed-rate deal to first-time buyers in Dublin. A five-year fixed-rate deal would cost borrowers in its home town of Edinburgh 6.14 per cent. Royal Bank of Scotland (RBS) is charging 2.95 per cent for a new mortgage in Ireland; in the UK, it charges 5.99 per cent for a similar product.
Obviously the banks are speculating that the Euro will strengthen against the pound in the foreseeable future.
Source: The Times
Michael Coogan, director general of the Council Of Mortgage Lenders:
“The most important element of this Budget for the mortgage market over the long term may prove to be the new asset backed securities guarantee scheme. This potentially offers an opportunity to restart the capital market funding for mortgages that will be a crucial factor in delivering an adequate supply of mortgage credit.”
Gillian Charlesworth, RICS Director of External Affairs:
“The Chancellor has recognised the need for assistance to the housing market as essential to helping Britain’s economic recovery. Government action to support mortgage lending should help translate buyer interest, which has picked up in recent months, into actual sales. Additional funding for HomeBuy Direct and extending the stamp duty holiday should also encourage those wishing to get on the housing ladder. Measures announced by the Chancellor will help move towards a sustainable and vibrant housing market for the future.”
Ian Potter, operations manager of The Association of Residential Letting Agents:
“Yet again Gordon Brown’s administration has wasted an opportunity to improve the quality of stock of lettings property by failing to incentivise landlords through tax relief on labour and materials. Not only would this have helped to stimulate the market, particularly in the construction sector, but it would also have provided the greater standards of rented accommodation that this country desperately needs.”
Source: The Rat & Mouse
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