Contractor Mortgage approvals rising
Contractor Mortgage approvals rising
Contractor Mortgage approvals rising
Mortgage approvals rose in February by 2.27% over January figures. The Bank of England statistics, released yesterday, not only show increases in approvals but gross mortgage lending as well. This is positive sign that the mortgage market is moving in the right direction.
Bank of England Statistical Release:
"Within total lending, lending secured on dwellings rose 1.2 billion, compared to the previous six-month average increase of 1.0 billion. The twelve-month growth rate remained unchanged at 0.7% and the three-month annualised growth rate increased 0.1 percentage points to 0.9%."
"Approvals for remortgaging (35,725) increased in February and were higher than the previous six-month average (31,674)"
This is a good indication of contractor mortgage approvals as they generally follow the same trends. It was the approval of remortgages that drove growth last month, this suggests that people are switching as they anticipate an increase to the base rate of interest.
Gross mortgage lending by mutual building societies has also risen year on year in February by over 26%, the figures rose from 1,174 million in February 2010 to 1,486 million in February this year. It was not only gross lending that increased but approvals rose by almost 23% year on year. This is good news for contractors as contractor mortgages generally follow the same trends.
Director-General of the Building Societies Association, Adrian Coles, commented:
"Mortgage lending by mutuals continues to grow from the low levels seen last year. The good financial results released recently by many mutual lenders show that they are strongly placed to offer attractive products to homebuyers. However, activity in the housing market remains at levels that are subdued relative to previous periods, as potential buyers continue to have concerns about the economic outlook."
It seems like contractor mortgage options will continue to rise in the coming year, and new products should reinvigorate the mortgage marketplace enabling future growth. Contractor mortgage borrowers will benefit from all of these improvements and market conditions, as long as they are aligned with a good advisor.
Also new two year fixed rate mortgage product with a 90% LTV has been launched from Skipton Building Society, rates are reasonable, but this is part of a bigger trend toward higher loan to value products. This could be as a direct response to the trouble many are having in getting there deposit together.
Head of products at Skipton, Kris Brewster commented:
"We are continuing to do all we can to help borrowers achieve their homeownership aspirations despite challenging market conditions, by offering choice and good value including higher LTV options to suit a range of circumstances."
We are continuing to see greater options being provided by lenders in these challenging market conditions, and although contractor mortgages are less well catered for by lenders , we do everything we can to maximise the opportunities that are given. To ensure you get a good deal we continually engage lenders in constructive conversations.
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