Property finance
Carry on crunching
Andrea Kirkby monitors the money supply market
ne of the major constraints products including one from the Halifax
O
in the property sector right which offers to pay council tax for half a
now is that of securing year for first time buyers, and a fee-free
finance. Lower mortgage offer from Alliance & Leicester.
approvals, tighter lending However, loan to value ratios are still
criteria, and banks’ risk restrictive. Hagger says, “Unless you’ve got
aversion, have all made it more difficult to a big deposit to put down you’re still paying
secure funds for property investment a big premium on the interest rate.” While
across the spectrum from home ownership in the boom, the income multiple was the
to development finance.
In the past couple of months, though, There were nearly
main focus, it’s now the size of the deposit
which is the main focus of both banks and
there’s been some evidence that the
markets are thawing and finance has 3500 buy-to-let
buyers. “People are saying I need to put
down as much as I can, rather than I need
become easier to find. Are we all kidding
ourselves? I rang a number of industry products in
to borrow as much as I can,” he says.
Lending criteria appear to be loosening a
experts to find out.
In the residential mortgage market, it July 2007, now
little, with more mortgages available for
higher LTVs. Pricing for 80-85 per cent
looks as if we may be past the worst,
according to Andrew Hagger, a spokesman there are 224.’
LTV mortgages is also now getting more
competitive, though buyers without a large
for the price comparison website deposit will still pay a premium.
MoneyNet. He says, “Mortgage providers Darren Cook, MoneyfaCts Hagger doesn’t believe we’re likely to see
are beginning to show a bit more appetite,” 100 per cent mortgages return. If they do,
since negative equity is less of a concern he thinks they will probably be specialist
now that the house price decline appears products, most likely on longer term fixed
to be slowing. He’s also seen a lot more rates with much stricter criteria and tight
advertising in recent weeks, with promoted customer targeting.
12 JUNE 2009 PROPERTYdrum
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