Increased Rate of Homeowner Finance

UK lenders recently released statistics revealed that 23% more homebuyers are seeking finance.

This is good news for all, and with £1.9bn being offered in mortgages to first-time buyers in the past month, it is this group which is coming back to the market the fastest, as house prices are typically 11.7% less than they were a year ago.

This news comes as a re-assurance that the housing market is finally starting to stabilize, but with the current state of finance in the United Kingdom, there is considerable discourse about whether or not the British public are getting a good deal.

The Council of Mortgage Lenders (CML) recently said that whilst the increase in lending is good news, much needs to be done before the market returns to normal.

Since the financial crisis, first-time buyers are having a hard time as banks are now requiring deposits which are significantly higher than before. Typically, banks now require deposits in the region of 25% in order for first-time buyers to secure finance.

Low interest rates and more realistic house prices have fuelled a minor surge in market activity, which may be an indicator that things are finally starting to recover.

With Banks having spent over £1.4 trillion of public money in order to revive the banking sector, organizations such as RBS and other banks have been lax in helping to reinvigorate the consumer finance sector.  It has recently come to light that the consumer is not feeling much as banks are effectively taking much of the profit directly for themselves in attempts to repair their own deficits.

This is making it difficult for many people to secure finance on reasonable terms.

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