It was refreshing to see a few days ago that there is to be another enquiry into the mortgage industry and why lenders are not lending more – refreshing in a dry glass of hot sawdust type of way!
They are going to investigate in-particular, “the sharp rise in repossessions and the chronic shortage of affordable home loans for first-time buyers”.
Brilliant. Is that really the best that the Government can come up with? A cross-party committee of MP’s wagging fingers at bankers and telling everyone what they are doing wrong whilst they try to keep their latest expenses form under wraps!
Sometimes, when sitting down to write these blogs, there is a news item which you feel makes much of what you planned to write seem pretty insignificant. The news that is filtering through from social media sites such as Twitter from Iran puts much into perspective.
Whilst we all battle with the mundane tasks of trying to earn a decent living, others are battling for basic human rights.
A very interesting product was released today by Lloyds Tsb which shows two things. Firstly it has renewed my faith that lenders can still be innovative when the put their minds to it, and secondly that arguably this is a step towards lenders actively encouraging first time buyers back into the Market perhaps believing that house prices will begin to recover soon.
While there are a few conditions to this new mortgage product, they are far outweighed by the positives. 4.39% fixed for three years at 95% LTV is an exceptional rate and, presuming parents still have some spare cash floating around, will be a major fillip for certain first time buyers and therefore the market as a whole.
Up, down, round and round, there is so much contradictory data out there at the moment that buyers — and indeed sellers — don’t know where to turn.
Recent house price stats show anything from another monthly fall to a slight rise, although interestingly the year-on-year stats mainly seem to show between a 15% - 20% fall. What does seem to be clear, therefore, is that the various sources predicting a 40% or even 50% drop are wide of the mark.
Now I am sure I will get pilloried for that comment on places like House Price Crash.com, but I just cannot see another 20% drop on top of this.
Andrew Montlake, Communications Director at Coreco and ‘Mortgage Personality of the Year 2008’, gives his views — honest and no holds barred — on the latest developments within the mortgage and property markets.
