Online House Hunter: Mortgage relief

Analysis suggest an increase in mortgages during January

There could be some cheer for the government according to e.surv chartered surveyors who track activity in the mortgage market.

They’re extrapolation of data suggests there was a 19 per cent year on year increase of mortgage approvals during January – the highest number of approvals since December 2009. And while the figures are no where near the halcyon days of 2007, it would appear the banks are finally loosening their grip on mortgage finance.

The mortgage monitor says the increase has been driven by more loans to borrowers with small deposits, with more first-time buyers being given access to high-loan-to-value (LTV) mortgages by lenders. “Since January 2011, high-loan-to-value lending has almost doubled. Loans to borrowers with a deposit of under 15 per cent accounted for only seven per cent of all loans for house purchase back in January last year, but have risen to account for almost 13 per cent.”

Richard Sexton, director of e.surv, strikes a note of caution: “The early months of 2011 were so weak that the year-on-year growth in January is more an indictment on how suppressed lending was a year ago than it is a sign of a vibrant market. First time buyer numbers are still low by historic standards and buy-to-let lending is forming an increasing share of overall lending.”

The Council of Mortgage Lenders says properties bought with buy-to-let mortgages increased by 84,000 in 2011 and with demand for rented property still strong it’s likely this will continue to be a significant factor in the overall mortgage equations.

In addition to buy-to-let there’s another factor at play – first time buyers are exempt from stamp duty at the moment but that will come to an end in March.

Those looking at the complicated world of mortgages and wish to discover if they can afford one and which is the best deal can find plenty of help online. Below are just some of the links you may wish to bookmark…

• e.surv mortgage monitor
• Independent Mortgages section
• BBC mortgage calculator – just one of the many mortgage calculators on the market
• Types of mortgages – a plain English guide from Direct Gov
• Council of Mortgage Lenders: Consumer guide
• Citizens Advice Guide – Managing your mortgage
• Money Saving Expert – Mortgage guides
• Minimum Income Calculator
• Council of Mortgage Lenders

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