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Buying your own home

Buying your own home

FINANCE 1rsAs I write this England have just lost against Uruguay and our office is very quiet!  However, hope springs eternal and we will all be hoping that Italy come to our rescue.

In this month’s edition I shall be taking a look at the current state of the mortgage market particularly in the light of the Bank of England governor Mark Carney’s comments regarding interest rates. As Ross Walker, senior UK economist at RBS said; “The BoE Governor has signalled a significant shift in the BoE’s monetary policy stance…..Last night’s speech feels more like Maradona’s “Hand of God” goal”.

For those of you who are looking to either move house or buy your first home finding the right mortgage can often be a daunting prospect and since the end of April, when new regulatory rules came into force (MMR), many lenders are imposing much tougher affordability requirements.

So how is the market for mortgages doing? A recent tweet from the Council of Mortgage Lenders (CML) commented that “Gross mortgage lending held steady in May and was an estimated £16.5 billion, this is identical to April’s gross lending total and 12% higher than May last year. CML’s chief economist Bob Pannell commented:

“Market indicators point to a slowdown in activity levels, in part associated with new mortgage rules, but it is unclear how lasting this will be. Implementation of the new regulatory regime is likely to have disrupted the normal patterns of activity, creating statistical “fog” around the published figures. As this lifts over the coming months, a clearer picture as to any lasting impact of the MMR rules on lending activity should emerge.”

Which I guess is economist speak for we are not sure what’s happening! Indeed recent surveys and data give a mixed message. According to HMRC seasonally adjusted property transactions have been more than 100,000 for five months in a row; the strongest performance for six years. However, approvals for house purchase have eased back since the start of the year, according to the Bank of England, with April’s seasonally adjusted figure of nearly 63,000 some 5% lower than in March and the lowest since mid-2013. Meanwhile, softer data adds to the credibility of anecdotal reports that demand in London has begun to cool.

All of which might leave you thinking that watching the World Cup, even without England, is preferable to either buying your first home, re-mortgaging or moving house! However, help is at hand and our mortgage experts at Lyndhurst can both find the right deal for your personal circumstances and guide you through the new regulations.   Call Ken Simmons on 01582 715777 and he will be delighted to explain our service to you.

Finally, I have the USA in our firm’s sweepstake but my tip for the eventual winners is………The Netherlands, you read it here first!

Geoff Newman
About Geoff Newman (35 Articles)
Helping you to plan your future, financially for peace of mind