NOVEMBER NEWSLETTER
As we enter the last 6 weeks of 2009 it is an opportune time to review some recently released statisticsabout our marketover the latter part of this year.
One of the more positive indicators from data just released by the Council of Mortgage Lenders (CML) was the increase in number of mortgages granted to first time buyers. Their data suggests that a total of 19,700 people bought their first home during September 2009, up 5% on August 2009 and a massive increase of 45% on September 2008, maybe this marks the return of the elusive first time buyer!
However, one of the factors that seems to be contributing to this increase in first time buyer activity was the Government’s temporary abolishment of stamp duty for all properties purchased up to £175,000. This concession will expire on 31st December 2009 and despite numerous calls to extend it the Government has not responded on the subject, so it is likely that from 1st January stamp duty will be back to its previous levels.
Whilst the Bank of England warns of a “long and hard recovery” in its quarterly inflation report, it also comments that UK output is unlikely to return to its pre crunch peak of £1.4 trillion level until 2011 and that interest rates may have to rise, possibly sooner rather than later. If that was to be the case all those borrowers currently enjoying low base rate tracker mortgages could start to feel the pinch.
There were also reports of the first growth in “buy to let” lending for over 2 years. According to the CML lending of £2.1 billion in the third quarter of this year was 10% higher than in the previous three months, while the number of loans advanced also improved. Despite the upturn, the CML said the recovery was from a low base, with lending volumes still much lower than their 2007 peak. "The recovery is modest but the figures show that buy-to-let is here to stay," said the CML's Michael Coogan. "Buy-to-let lenders are among those facing some of the biggest challenges in raising mortgage funding, so the improved figures are all the more welcome."
So as we edge towards the end of 2009 we are happy to report that the mood in our market is more positive than at the start of the year and if current trends continue we expect 2010 to bring more competitive mortgage products both for the owner occupation and “buy to let” market, so if you are planning to move, refinance or increase your “buy to let” portfolio please do call or email us so we can provide you with the details of the most up to date mortgage rates. As always, you can reach us on 020 7484 9208 or email me at info@letsmortgageit.com
