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Housing Market Sends Mixed Messages

Written By On 07/04/2013

Figures from the Bank of England for the month of February suggest that property prices outside London will remain stagnant in the near future.

51,653 mortgages were approved totalling nearly eight billion pounds worth of purchases across the UK and this was the lowest rate in five months.

The funding for lending scheme has now been operating for eight months and is available to the financial institutions until the end of January 2014. Commercial banks and building societies will be able to borrow from the Bank of England at a more competitive rate, and in turn they are able to offer more reasonable loans and mortgages to their customers.

The plan is that this will give the lenders an extra sixty billion pounds approximately to lend. The scheme has already encouraged them to make more mortgages available and there are already over 30% more of them for borrowers to choose from. In the past few months it has helped to create a more positive outlook on the housing market, in particular helping first time buyers get a foot on the property ladder.

Building societies have seen their lending increase considerably in recent weeks, but the Bank of England say this is because the banks are loaning less for mortgages.

The government feel there is more reasons for optimism in the housing market since they announced further plans in the Budget. It is called the NewBuy Guarantee scheme and the idea is that purchasers who only have a 5% deposit will be able to borrow the remaining 95% providing they are buying a new house or apartment.

It is a two part plan, the first of which came into action the beginning of this month, with the final part taking place January next year. This is not only available for first time buyers and if you would like further information you can obtain it at HomeBuy

If you are renting until you can save enough money to put down a deposit, it is important that your your credit ratings are good. Do not get into arrears as this may present a problem in the future when you apply for a mortgage. To prevent that from happening a payday loan may be a solution, but do not make it worse financially if it is a loan that you are not sure you can repay the following month.

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