Mortgage Business Expo - Positive!

Last week, I visited the Mortgage Business Expo (MBE) in Manchester. MBE is the mortgage industry’s leading exhibition where lenders, mortgage distributors, solicitors, and the like, advertise their wares to visiting mortgage brokers and intermediaries. The exhibition, which is usually held in London, has recently expanded to Manchester.

As well as exhibition stands, there are also seminars from industry leaders, trade bodies and regulators. What was apparent was the huge number of visitors in attendance and the very buoyant mood fulfilling the event. Although all seem to agree that lending volumes in the mortgage market will still be relatively small for this year, there was some anticipation from a lenders debate/seminar that volumes will increase next year. Especially after the government has recovered the funding (due early 2012) that was lent out to some Banks via the Special Liquidity Scheme.
This could be good news and would be great for first time buyers.

Despite a lot of positive news in this sector of late, a recent survey by the Yorkshire Bank has revealed that 84% of first-time buyers rely on financial support from their parents in order to purchase their first home. The figure has more than doubled since 2005, when just 38% of first-time buyers relied on the ‘bank of mum and dad’. As reported previously, some lenders are now offering mortgages to those with just a 5% deposit. A huge step forward since just 12 months ago and nearly all lenders are now actively looking to help first time buyers get on the property ladder.

Finally, it can be tempting to take up the offer of a ‘payment holiday’ from your lender. This usually allows a period of time (1 – 6 months) in which no mortgage payment is made. Although this can be an attractive offer, usually this will show as ‘no payment made’ on your credit report and more importantly, may extend the term of your mortgage repayment and increase the interest payable. Always make sure you read and understand the small print before taking any action. If in doubt, seek professional advice.