There’s much talk of green shoots in the UK housing market at the moment and to be fair most of it is true. The new buyer activity we’ve seen in the market since January is starting to stabilise prices and lenders are becoming a bit more confident. Evidence of this can be seen with two lenders currently offering 95% mortgages for first time buyers. While these deals are expensive and the criteria are tight, the fact that they exist is confirmation of lenders views on price levels. The overriding problem in the background remains the fact that the banking system is still overleveraged so we don’t expect to see big changes in loan to values or products for some time.
The news of the moment is that the wholesale market has seen interest rate swaps increase considerably over the past week. We’ve been expecting this for some time now so it’s not a big surprise but it does make the choice of mortgage products for the next few years even harder. With the spread between fixed and tracker being and largest for as long as I can remember this situation makes trackers look dangerously tempting. We always recommend you get advice when making this choice because the right choice is a very personal matter and depends on a list of personal financial variables.
For those of you interested in the details of pricing at the moment the market is offering the following at various LTV’s and Maturities:
Please feel free to contact Mike Abbott from Sable Property on 0776 544 0907 to discuss anything regarding your mortgage and related financial matters.