20 May 2011

An increasing appetite to lend..

The ‘Property Today’ box outside AToM ran out of property papers by Monday lunchtime this week! A new record! And with my neighbours selling their property within three weeks of going on sale, I could be accused of being overly positive about public interest in the current property market, despite what the national press are reporting!

One of the mortgage trade magazines (Mortgage Strategy) this week has revealed that they are aware that 11 new lending institutions have applied to the FSA for authorisation to lend, over the past 12 months. Great news and this shows an increasing appetite to lend. However, with the regulators indicating that they will make a decision within 12 months of receiving an application, some of these new lender opportunities could be a way off just yet!

Inflation has risen to 4.5% for April, from 4% in March, state the Office of National Statistics. Easter and the numerous Bank Holidays had a significant impact. Although, this probably won’t have an impact on the Bank of England Base rate with any rise unlikely to occur until November at the earliest, reports an economist for Cebr. Who knows!?

I’ve mentioned this before, but its back on the radar. Many dormant lenders are offering customers a discount of up to 30% off their mortgage to move away. If your current lender is one of these (not actively lending), then it’s worth a call to see if you qualify for a discount. Normally, they will give you a deadline in which to complete the transfer of your mortgage but I’m sure it’s a timescale that AToM could meet!

And finally, remember that financial institutions evaluate your mortgage application based on your credit history. In fact, every financial outlay you have, or have had, may be reported upon. Most institutions will use either Experian or Equifax to review your financial status. If you have too much credit, not enough credit, or missed payments on any credit or utilities (including Gas bills or Mobile phones), you may find that mortgage availability to you could be limited.

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