Seeing more ‘sold’ signs?

Posted in 'Neighbourhood' by Barry Stamp

23 April 2010

You certainly should be, as mortgage lending topped £11.5 billion in March 2010, up 24% on February’s figure, proof once again of our nesting instincts taking over, and fuelling the Easter peak in housebuying.

Compared to March 2009, mortgage lending in March 2010 was up 3%, according to new figures released by the Committee of Mortgage Lenders.

But if the quarterly figures are examined, mortgage lending in January, February and March 2010 was actually the lowest 'first quarter' lending figure for 10 years and a 24% decline from the last quarter of 2009, which was artificially boosted by people rushing to take advantage of the stamp duty holiday.

Confused? You’re not alone. The prospects for the mortgage market remain uncertain, as the number of mortgage products available remains thin and are mostly available only to established home-owners with good credit ratings. Next year, the various mortgage support schemes are due to come to an end, and whether lenders will take up the slack and start to be more accommodating remains to be seen.

Overall, there are some signs of a 'gentle improvement' in mortgage lending, but it’s not one that’s going to change the current tight lending climate in the short term. If inflation rises, interest rates are expected to rise alongside, and that will dampen demand for both mortgages and re-mortgages.

If you’re thinking of moving house, don’t forget to check out how the postcode rates financially by using our free Check Your Postcode service.

Also don’t forget to check your credit file to make sure there are no nasty surprises on it that could add an unwelcome hindrance to your mortgage application.

If you find you have an impaired credit history or if your mortgage requirements are unusual, and are having trouble getting a mortgage, you can obtain specialist help here.

Check your credit file now