02/10/09 - The Land Registry has confirmed this week that house prices decreased in August by 0.1%. Slightly unsurprising news as their data is from property sales some months previous. However it is also stark reality that despite signs we are on the way out of recession, the market recovery is going to be slow and enduring!
In fact, Creditaction figures for October report that the average Brit is just £155 away from a money meltdown. 12m Brits (25%) are currently struggling to cope with their monthly bills and 39% of people would be in trouble if they had to find just £50 extra each month. Essential bills now equate to £1,378 on average each month per person and £2,001 for families.
House purchase mortgage approval numbers for August were 81.4% higher than a year ago, despite data from the Bank of England confirming that 20% of all applications for mortgages for house purchase by major UK lenders were rejected!
The average current Mortgage Interest rate is reported to be 3.58%. The average house price in the UK in July 2009 for first time buyers was £143,454 which is an annual decrease of – 9.1%.
There were 11,400 cases of house possession (equivalent to one mortgage in 1,000) in the second quarter of 2009. According to the Council of Mortgage Lenders, this equates to 125 properties being repossessed every day or 1 property being repossessed every 11.5 minutes.
UK house prices will not reach their autumn 2007 peaks for at least another five years, according to the Ernst & Young ITEM Club. They also expect that house prices will fall again in the first half of 2010.
So, where is the good news? Well, AToM have experienced a 22% upturn in new enquiries over the last month. We have been able to secure products for more than 80% of applicants and this is a dramatic increase. We are experiencing more flexible underwriting from a number of mortgage lenders and the signs are that interest rates for fixed term products are reducing again. All the more reason to visit us to discuss your personal mortgage requirements.
No comments:
Post a Comment