3/7/09 - It is really pleasing to note that there is an upward surge in consumer confidence in the housing market and this is showing in the mortgage market as well. There is a noticeable intent also on the part of some lenders who are re-visiting criteria and rates to see if they can start to attract more business which will progress from application to completion. For some time now initial applications have been approved in principle but then many cases have run into brick walls somewhere along the line.
More positive news with the Nationwide releasing figures stating that house prices rose 0.9% in June, the third rise in the last four months. It has also pushed up the average house price to £156,442 from £154,016 in May.
Conversely, this somewhat better news has the ‘occasional’ sting in the tale as interest rates are starting to rise and particularly in the fixed rate sector. So, as I keep repeating, make certain that you catch the rate before they rise even further and it is a generally accepted view that they will in the coming weeks and months.
To put this in to perspective, one lender last week sent out notice of their intent to withdraw products. This was sent to all mortgage intermediaries at 2pm. The laughable side was that they gave a deadline of 3pm (same day) to secure the product and rate by completion of a decision in principle (effectively an online application)! Just one hours notice to save rates that we might have been discussing with customers for some days previous! And of course, the replacement rates were all somewhat higher.
Finally, over last weekend, AToM moved to new premises in the Carfax, Horsham. We are right next to the bandstand in the town centre. Please feel free to drop in, appointments are not necessarily required and we’d be delighted to meet with you.
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