Mortgage approvals help property market activity
After a few years of stagnation in the UK property market due to lack of lending it seems there is some light finally.
On Thursday 20th June the Guardian reported:
Mortgage lending jumped 21% in May, the sharpest rise since October 2008, suggesting Britain’s housing market once again has a spring in its step.
The Council of Mortgage Lender’s gross lending figures, which reveal the value of loans advanced without taking into account repayments, showed £14.7bn of mortgages were taken out during May, up from £12.2bn in April. The figure was also 17% higher than the £12.6bn seen in May 2012, aided by government schemes to boost lending.
Does this mean the Funding for Lending and Help to Buy schemes are working?
PropVestment’s client have had experiences that surprisingly agree, however there seems to be discrepancies across lenders.
One client of ours had a mortgage approved in principle by Santander. He had good credit, was buying below value and was putting in 30% of the money himself too. After two months waiting for Santander to send a surveyor over to value the property, a job most of us could do using Land Registry and Zoopla data, Santander say they have had a re-think and do not need a surveyors report. Santander pulled the plug.
Fortunately this deal was not part of a chain, and the seller was understanding. However due to poor business practises Santander could cost the industry dearly.
Our client returned to us, we put him in touch with our favoured mortgage broker, who went to the Halifax. Halifax approved, surveyed and letter of offer within 7 days.
We were surprised at the speed of response of Halifax. Previously we have not had such good experiences with the government owned banks since the credit crunch. LloydsTSB part of the HBOS group has usually been responsive with Natwest and the RBS group being the worst. Our client’s experience and a few others we have heard with Santander now put them firmly on the unfavoured list.
Money talks in this industry, if lending is available without unnecessary hassle, any bank will gain a strong reputation and foothold in the market.
We welcome your thoughts on the topic of lending in the property market and inparticular perspectives from other parts of the country. Email info@PropVestment.com
If you are having trouble getting finance for your property, we have a great range of mortgage advisers that can assist you.