Welcome to the mortgage blog. This blog is written and maintained by an active UK Mortgage Broker and I’m going to give you every piece of information possible to make the best choice for your mortgage or re-mortgage.
The uk mortgage and property market (for that’s what it is) changed massively in 2008 and will undergo further changes into this new year. One thing is certain, finding the best mortgage deal will remain as complicated as it always was.
Having worked in Financial Services for the last 15 years I thought that I had as good a grasp as anyone re. the ups and downs of the property market, but like everyone else I was surprised by the depth of the problems that began to unravel in August 2007. Now we find ourselves in a world where Northern Rock has gone from being the fastest growing mortgage lender in the country to basket case (and back to active lender again), the mighty Halifax reduced to getting out the begging bowl and once profitable mortgage packagers struggling to survive.
Here’s how I see the situation for 2009. UK property prices will continue to fall after dropping by 16% in 2008 taking the average house price back to 2004 levels. I’d be surprised if we didn’t see similar falls this year and less than surprised if the market saw a real crash.
The reason for continuing doom and gloom in the property market is the fact that the banks are unwilling to lend at more than 75% loan to value and I do’t blame them. If I ran a bank and thought that property prices would probably fall by 15% this year, even lending at 75% ltv means I’m really lending at 90% ltv by the year end.
Add to that the problem of a whole swathe of prospective property buyers called first time buyers who’ve effectively been taken out of the market due to the requirement for a 20% deposit and you have a property market that is unsupported at the bottom end.
Expect then another 15% fall in property prices in 2009 followed by a period of stagnation in 2010 asd perhaps the beginnings of an upturn in 2011.
Stay tuned for real examples of how to steer yourself through this problematical time and find the best mortgage deals for your situation.
