Over the last few weeks, we have seen a number of lenders who have post positive half year results. Many stating that they have increased lending against their previous financial year. But this is hardly surprising as many didn’t want to lend (or maybe were not allowed to!) post the new regulation implementations in early 2014. However, it is important to run with the positive news and such announcements on half yearly figures show that lenders are now keen to lend and are looking at ways to compete in an active market. What this means is that end consumers should be able to bag a bargain for some time yet whilst rates remain low and competitive. Some industry pundits are even stating that it will be the middle of 2016 before they expect any rate rises…
This has also resulted in a swing between the high street and niche lenders. The smaller lenders are stealing market share from the ‘super tankers’ on the high street as an increasing number of consumers are requiring a manual and human assessment rather than a computer decision making system. Despite all of the available technologies in the current climate, sometimes a conversation with a human being is just what is needed!
From where we see it, on the front line, I would dare to suggest that consumer confidence appears to be the highest it has been for some considerable time. People are selling, people are buying and many are remortgaging! August is never normally this busy! It is not just one geographical area either, although does appears to have a leaning to the south. What does seem to be apparent is that the demand is for ‘all types of mortgages’ for all types of people! From the straight forward, to the complex, to the commercial shop front, to the credit issues, to the first time landlord investing in their first Buy to Let property and so much more, we are seeing many different scenarios.
Finally, Nationwide House Price index has indicated that House Prices increased in July by 0.4% compared to June and 3.5% over the last twelve months. The average house price now sits at £195,621.