Mortgage market will recover in 18 months Says Commentator
Thu, 22 Oct 2009
Property Investment Advice firm Assetz’s Chief Executive, Mr Stuart Law, has reportedly said that based on the last 2 quarters figures, mortgage lending levels will recover within 18months.
Sighting figures from the council of mortgage lenders showing £12.5bn in mortgage loans for September, Mr Law believes we are seeing positive signs.
Mr Law is quoted as saying, "Mortgage lending has materially recovered, the current mortgage lending numbers are not as good as they were in 2007 but that [is because of] reduced availability of low deposit mortgages”.
Many however will be familiar with the term ‘Past performance is not necessarily indicative of future results’. In the past month or so we have seen all major lenders cut their rates and most major lenders have improved Loan to Value ratios and launched more competitive tracker mortgages. These factors would explain the increase in mortgage lending of late.
At this stage however, beyond the post office’s planned entry to mortgage with a new tracker mortgage, there is little on the horizon to further stimulate lending growth. Furthermore remortgaging has continued to fall.
i.e. Those who cannot (i.e. not just choosing to wait) get a mortgage this month, are unlikely to be able to next month.