Whilst predictions are often difficult to make in the current economic climate there appears to be lots of news from the mortgage market pointing to a more positive outlook for 2013 and beyond.
At the start of the New Year a number of lenders have launched new deals which are more competitive than what has previously been on offer. Many of these deals are targeted at first time buyers or movers who have only a small amount of equity whilst home movers may be able to benefit from even lower interest rates.
The apparent ‘opening up’ of mortgage availability has been helped by the Funding for Lending scheme which was introduced to do just that. It is widely believed that the scheme will manifest itself during the course of this year having a positive impact on the market.
The Bank of England’s monetary policy committee has elected to hold the base rate at 0.5% – a record low for the 46th consecutive month since March 2009. In a survey of lenders released by the Bank of England in January they report that lenders anticipate increasing their lending at high loan to value ratios in the first quarter of 2013.
Let’s Look At The Evidence
Interest rates forecast to remain low for a further 4 years means house buyers can budget more effectively over a reasonably long period of time. Certainty in knowing what your outgoings are brings more confidence to the question of affordability.
First time buyers likely to see higher loan to value mortgage availability in the first quarter of the year – coupled with the added benefit of low interest rates forecast for the next 4 years then buying could make more sense than renting.
Home movers with low levels of equity could take advantage of the higher loan to value products which are being promised by lenders.
Those moving up the property ladder not only benefit from low interest rates and more competitive mortgage products but the prospect of more first time buyers helping to get the market moving.
With this in mind – January could be the ideal time to plan for your future. If moving home is a priority for you why not start the process by arranging a free no obligation consultation. Our consultations are designed to help you understand the current dynamics of the market and provide a no obligation pre sale valuation of our own home.