Mortgage market returning
Positive results show the mortgage market in Gloucestershire is returning, writes Stroud-based financial adviser Graham Taylor, of Capital Private Finance.
It has been a tough few years for the mortgage market, high street lenders had pulled back from lending to all but the most financially attractive customers and many were finding it tough to get finance.
Borrowers across the county are finding it easier to obtain finance, regardless of their circumstances. Schemes such as the government's Funding for Lending programme have made it easier for banks, still recovering from the financial crisis, to grow their mortgage books.
The Bank of England has also reported that the number of mortgage loans approved in June has rocketed by 3,000 compared to the previous six months average and this could prove that there is renewed confidence in the mortgage market.
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House purchase loans remained upbeat in June, the total value was up to £14 billion, maintaining steady optimism for further market recovery.
Buyer attention has been captured by fixed rate deals that have kept on falling, while product numbers were back up to nearly 10,000 in June. The government's Help to Buy initiative has also stirred interest, with a number of high street lenders putting forward competitive products specifically for the scheme.
But despite the new vigour, some old principles still remain true. Borrowers should save as big a deposit as possible, those with a deposit of just five per cent can now find mortgages far more easily than in the past but those who can save extra funds can access much more attractive products at the 90 per cent loan-to-value level. Getting professional advice also remains key, with a record number of products on the market a trained mortgage adviser can help find the right mortgage.
But now is the best time to look for a mortgage in a number of years, don't miss the opportunity.