Home owners and first-time buyers set to benefit from funding for lending scheme
The mortgage market is set to continue its recovery this year, thanks to restored confidence fuelled by the government’s Funding for Lending Scheme (FLS) and increased competition amongst banks.
First-time buyers and individuals with Standard Variable Rate (SVR) mortgages are set to benefit the most, but we are urging individuals to speak with their financial adviser to find the best rate possible.
According to the Bank of England, the last three months of 2012 showed a significant increase in availability of credit due to FLS, which was launched in August and aims to boost bank lending to households and businesses.
Confidence in the market is set to increase even further in 2013, as more banks look to take advantage of FLS before the January 2014 deadline, and existing mortgage lenders begin to compete with each other and therefore reduce their rates.
Malcolm Hart, independent residential and commercial finance adviser at Taylor Patterson, believes FLS will reinvigorate the mortgage market significantly in the next twelve months. He said: “The government’s FLS initiative sends out a very positive message to the banks, and they have responded by borrowing more, and much more cheaply, than previously.
“Although FLS is still relatively new, the last quarter of 2012 has demonstrated that shoots of recovery have already been injected into the market, with mortgage rates falling even at higher Loan-To-Value (LTV) ratios and more people opting for fixed-term deals.
“This is welcome news for individuals sat on SVR mortgages who may now be able to re-mortgage, and should help first-time buyers struggling to find large deposits, which is still an issue in the market.”
In order to take advantage of this upturn in the market, Malcolm recommends contacting Taylor Patterson who have access to the whole of the mortgage marketplace and will be able to compare headline rates for purchase and re-mortgage and advise accordingly.
He added: “Although on-going concerns of job security and the wider economic outlook may harm buyers’ confidence to look for new houses or re-mortgages, it’s important that people don’t miss out on this rare opportunity, especially as more banks look to sign up to FLS in 2013.
“Competition for business can only be a good thing for consumers, who stand to benefit as rates continue to fall.”
If you are looking to purchase a property or to re-mortgage, or for more information about commercial or residential mortgages, contact Malcolm on 01772 555 073 or email firstname.lastname@example.org.