UK Loan Market ? What’s In Store For Homeowners?
UK Loan Market ? What’s In Store For Homeowners?
As we notice for the past few weeks, there has been a spurt in number of new mortgages and rate cuts. This is done in the wake of corrective measures floated in the various quarters of UK financial markets. This is also one of the signs where we see loosening of the market. Indeed, it is also a welcome sign as far as UK loan market is concerned.
Reduced Mortgage Rates
To name a few lenders, Halifax, Abbey, Northern Rock, Leeds Building Society, and Woolwich have resorted to cut mortgage rates considerably. As a result, we witness a lot of new and competitive products launched by them consequently.
High Loan-to-Value (LTV) Ratios
The considerable cuts in mortgages has resulted in lenders offering higher loan-to-value (LTV) ratios. There is a difference of opinion as far as LTV is concerned. While it may sound good for a moment, the reality according to the experts may be different. Those who are looking to buy their first homes or looking for re-mortgage on to new deals might find it difficult to do so.
Aggressive Cuts Spiral
As we see an aggressive pattern of pricing from Northern Rock, it has resulted in offering the best rates. The cut has been conducted for the fourth time in a little over a month. Abbey also went in for the race and has offered a wide range of mortgage deals at lower rates. Now one can get a fixed-rate loan at 5.99 per cent, with 90 per cent LTV and no fee. Abbey also offers a three-year tracker mortgage at 2.99 per cent with 75 per cent LTV. This is also available for re-mortgage customers as well along with those going for purchase.
Woolwich is also favouring the customers going on similar lines, although it is not in stiff competition with the above mentioned companies. However, it has accepted to loosen the lending criteria as a result.
CML Findings
Council of Mortgage Lenders (CML) in its most recent study has indicated the gradual easing of lending conditions. As the data shows, the number of house-purchase loans grew to 50,600 in September, which is equivalent to an increase of 2 per cent on the previous month. Nevertheless, UK house-sale activity is only two-thirds the long-term average. It has been the result of shortage of property, particularly in London. As a result borrowers are finding it difficult to strike a good deal.
Homeowners Delight
Homeowners are at advantage with sudden increase in housing sector. One of the pertinent reasons is that there has arisen enormous amount of opportunities for them in the wake of changing scenario.
As more and more sops are offered to the borrowers, there is a set of massive opportunities for them to take advantage. As one of the decisions by Supreme Court on the issue of unauthorised overdraft fees issue has gone in favour of UK banks, there are clear signs where UK government is looking keen on consolidating the banking system. This would certainly lead to more lending of loans. This way, homeowners can expect series of benefits from UK loan market as there is no dearth of loan providers in UK.
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. She has done her masters in Business Administration and is For more information about loans: No Faxing Payday Loans ,Personal Loans , Life made easy, even during low times with the help of secured loans
