Lenders have started to release their six monthly profit/loss figures this week. With HBSC and Barclays reporting £3bn in profits over the last six months, the future started to look great, especially for those anticipating large bonuses! But then came reports of losses from Northern Rock (£724m) and Lloyds Banking Group (£4bn) and with it signs that we really are not much further forward than we’d hoped.
Nationwide became the heroes of the week by lowering interest rates, some by as much as 0.5%. This was quickly followed by their specialist arm, The Mortgage Works, who major in Buy to Let mortgages, who also reduced some of their rates.
In our Carfax office, we have seen encouraging signs that people are now looking for property with more confidence than of late. Some are enquiring to find out how much they can afford whereas others are chasing interest rates whilst they remain low. Consumer confidence is definitely on the increase and this is supported by the increasing number of first time buyers exploring all avenues to try and get their foot on the property ladder. I am impressed by the increasing willingness of some lenders to accommodate first time buyers looking at shared ownership schemes. First time buyers, if eligible, can purchase a percentage of a property (between 25 and 75%) and a housing association purchases the remainder. The buyer then pays rent on the latter percentage with the option to purchase an increased share of the property later on. There are many schemes available and a good supply of properties in the area, so do review all the options available.
Finally, we were visited by one lender this week, who had ‘mothballed’ themselves about a year ago and who have now indicated that they will be rejoining the lending arena in the not to distant future and more surprisingly, they are currently looking to employ up to 10 new staff! Positive news and fingers crossed that this is the beginning of a new era.
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