Homebuyers looking to get a step on the property ladder have been encouraged by mortgage brokers who have said it is getting easier to secure home loans. BDRC Continental research, commissioned by Halifax Intermediaries, found that 70 per cent of brokers believed the competitive mortgage rates seen in the second quarter of 2012 were good news for the property market. This has led to a rise in the number of loans taken out per broker compared with the previous year.
The study showed the number of cases being written for individual brokers was an average of 74.5 for these three months of the year, up from 66.5 in the same period 12 months before. It also found that mortgage approvals in the UK rose by 12 per cent over this time. Speaking about these results, Ian Wilson, head of Halifax Intermediaries, said: "It is encouraging to see increasing confidence in the sector over the course of the last few years."
He commented: "However, the economic outlook remains challenging and the mortgage market is still limited, with brokers concerned that while an increasing number of products are available, distribution remains restricted." A number of mortgage providers have cut their rates recently, which could help more homebuyers get on the market.
Yorkshire Building Society, for instance, reduced rates on its tracker mortgages at 75 per cent loan-to-value (LTV) last week, launching a new two-year tracker at 2.79 per cent. Similarly, Chelsea Building Society is preparing to cut its rates from tomorrow (September 20th), introducing a two-year fixed-rate loan at 70 per cent LTV at 2.74 per cent.
Chelsea Building Society product manager Sunjeev Sahota said the firm is "answerable to our members so try very hard to be responsive to their comments about the types of products that they want". These mortgage reductions could boost the residential property market in the UK. This comes after the Royal Institution of Chartered Surveyors last week revealed its UK Housing Market Survey, showing that the proportion of home sales during August remained relatively stable.
- Thursday 20 September 2012