The Remortgage Market Recovery Is Still Choppy At Best, How Do You Make The Most Of It Then?

Since the start of the global financial crash

, the lending industry has been risk averse when it comes to granting remortgages too quickly. One of the contributory reasons for the crash was the issuing in such great numbers of excess mortgages. Even though this is the case, there are now signs that the market has slowly been improving as remortgage rates steady.

100% mortgages and mortgages offered to those with poor credit history, also known as sub-prime mortgages were blamed for the crash when it all started, and this led to many mortgage lenders becoming unwilling to lend. But now that it is clearly starting to recover, and property prices are increasing, lenders are now more enthusiastic about lending to home buyers or people looking for a remortgage.

The progress has not been even, however. In March, UK mortgage approvals were fewer than originally forecast, so there may be unexpected complications yet. Many city insiders were hoping for a robust recovery through March, but one failed to emerge. Predicted increases of 48,000 stopped 500 short of target. That suggests that even though the situation is improving steadily, market confidence is limited and the recovery ahead may still be difficult.

Estate agents are often quick to point out that there are often seasonal variations in the number of mortgage and remortgage approvals in the UK. For example, the housing market tends to slow down towards the end of the year, starting from September/October onwards.

The slowing of the mortgage lending in the winter months can often lead to a market without many buyers. During the financial crash, the fewer home buyers led by banks unwilling to lend for mortgage purposes helped to make a bad situation worse, as many home owners found it impossible to sell their properties.

There has also been a huge decrease in the number of first time buyers, which is quite clearly due to the lack of funds available, and the tightening of lending criteria set by the banks and building societies since the financial crisis. Remortgage figures have also dropped for the same reason, although the remortgage market is recovering more quickly.

Numbers of first time buyers also fluctuate wildly making it difficult to draw any trends. In September 2009, first time buyers made up 25 per cent of the property market, compared with just 10 per cent a year earlier.

Some economists believe that a market that varies so quickly is hard to judge on a long-term basis. The NAEA have published a statement insisting that greater government intervention in the housing market is needed in order to support the recovery.

In addition to the rise in consumer mortgages, a growth in more risky unsecured consumer debt has been seen. This is an indication that the financial markets are returning to their normal operating, behaving the way they were in before the global financial crisis, although economists warn that current market stabilisation may be temporary.

There has been speculation that prices may fall again in the coming months, however there is not much evidence to back this up, so it looks as though our markets are generally pretty safe for the coming months.

by: Howard Ogollegos

POST COMMENT

Data Centers Quick Weight Loss Diet Manual Data Help Centers Sprint Will Keep Unlimited Data Plan At $99 Per Month Make Your Ex Want You Back - Ex Recovery System Techniques That Work Find Out Where Outlook 2010 Stores The Pst Data File Choices Recovery Center - Alcohol Detoxification Choices Recovery - Drug Detox Great Plains Payables Computer Check Batch Recovery Notes From The Field Recovery Time Of Stiffness After Full Knee Replacement Helpful Hints On How To Protect Your Data Data Analysis Solutions India Data Entry: What Is It? Information Management Of Database Server