Gross Mortgage Lending Falls In April
The amount of money lent to those buying properties in April this year fell 11 per cent compared to March, standing at £18.4 billion, according to the latest figures from the Council for Mortgage Lenders (CML).
However, the organisation pointed out that, while April’s figure is below the £20.7 billion lent in March, it is still four per cent higher than the lending total of £17.7 billion recorded in April 2016.
Senior economist at the CML Mohammad Jamei noted that there appears to be a split between home movers, and first-time buyers (FTBs) and those remortgaging.
He described activity among home movers as “subdued”, adding that because there are fewer people moving property, that means there is less available on the market. This disparity between supply and demand is helping to underpin house prices, he added.
FTBs and remortgage customers are the ones supporting the mortgage market at present, Mr Jamei explained.
“Low mortgage rates are encouraging borrowers to remortgage and attractive government schemes are helping first-time buyers. We expect this trend to continue over the coming months,” he stated.
It seems that the slow housing market for sellers is impacting how they view buyers’ credentials, but making it more difficult for those in a chain. What Mortgage recently reported on research conducted by ClearScore, which found that 89 per cent of sellers prefer a buyer who can complete a purchase quickly, and would choose this over a higher offer.
Nearly a quarter of those surveyed said they’d definitely be prepared to accept an offer five per cent lower than their asking price, provided the prospective buyer was chain-free and had a mortgage agreed. A further 52 per cent said they’d consider this.
Given that there are an average of 11 buyers competing for each property on the market, this means FTBs who are financially ready to make a purchase are more appealing to a seller than someone who is selling a property to buy a new home.
CEO at ClearScore Justin Basini commented: “It’s not just about how high you bid, you must be seen as ‘buyer ready’.”
He offers potential buyers a number of tips to help get sellers to take you seriously and make it more likely that they’ll accept your offer. Top of the list is getting your credit score in order to make it easier to arrange a mortgage.
Mr Basini also suggests that getting a mortgage agreed in principle when you begin looking at properties is a good idea, to demonstrate that you’re serious and can afford any property you make an offer on.
Being cautious about the number of mortgage products you apply for is also advisable, as each one will feature on your credit record, which could have a negative impact on the rating you receive, and therefore the mortgage you’re able to obtain when you actually want to buy somewhere.
If you’re looking for estate agents in Seaham to help you sell your property, or to find your next home, contact us today to find out how we can help.