Mortgage Market Blossoming As Spring Arrives
Published: 14 April 2010 By MoneyHighStreet Staff Leave a Comment
The mortgage market is growing steadily as house buyers are encouraged by the spring weather, according to moneysupermarket.com.
By analysing searches on its website, moneysupermarket.com has found activity in the mortgage market increasing as home buyers venture out into the spring weather. The increased activity is reflected across a variety of borrower profiles, the comparison web site has found.
There has been a 13% increase in the number of people searching for mortgages to move home and a 29% increase in the number of remortgage searches, compared to the previous month. These findings tie in with recent news from the CML that mortgage lending increased in February, however they are at odds with the RICS which is showing the balance of power shifting from sellers to buyers in the housing market.
Moneysupermarket.com has seen an increase in the number of first time buyers using its website and attributes renewed interest in this sector to the Chancellor’s decision to abolish stamp duty on properties under £250,000 for FTBs.
There are also encouraging signs that borrowing constraints are easing slightly as the number of mortgage offers is now significantly better than twelve months ago. For example, The best deal for a prospective first-time buyer is HSBC’s two year discounted mortgage, at 1.99 per cent – 0.5 per cent less than the same product in April 2009. However this deal is only available up to a maximum of 60 per cent LTV and comes with a £999 fee.”
For those hoping to get a foot on the property ladder who have a smaller deposit, HSBC’s 4.49 per cent fee-free lifetime tracker is available up to 90 per cent LTV.
It is well worth spending time and effort to find the best mortgage deals, as Hannah-Mercedes Skenfield, mortgage channel manager at moneysupermarket.com explains:
“Anyone looking for a mortgage, whether it is to move home, remortgage or buy for the first time, it is essential you look around to make sure the deal is right for you. Although competition seems to be returning to the mortgage market, there are still products with low rates but high fees, and some of the best deals are only available to people who have a large deposit. It is important to compare the true cost of a mortgage as the lowest rate, will not necessarily be the cheapest product once you factor all fees and charges.”