Mortgage market update
1 July 2015
Caution in the housing market prevailed during April, with lending at a similar level to March but down 10 per cent on the same month last year, according to the Council of Mortgage Lenders (CML).
Uncertainty created by the general election played a significant part in encouraging buyers and sellers alike to sit on their hands until the outcome was known.
The way in which lenders have been cutting mortgage rates ever lower confirms this hiatus. Many lenders are keen to lend and have ambitious targets for the year but with borrowers unwilling to commit, they are having to slash rates even further to attract business.
Encouragingly for first-time buyers they are paying less to service their mortgage than at any time since 2005 when the CML started measuring this. Low interest rates are making it easier for people to get on the housing ladder and for second-steppers to move up it.
Looking forward to the second half of the year, there is a lot of capacity in the market so mortgage rates will continue to be competitive. Borrowers may also be buoyed by the certainty that the election has brought and with an interest rate rise still looking a way off, confidence is bound to be stronger.