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Mortgage activity offers hope Mortgage activity shows promise for 2012, as Brian Murphy explains.


Brian Murphy is head of lending for


The Mortgage Advice Bureau. A Loan amount


100,717 91,664


Gtr London


101,606 109,182 97,451 171382 140,179 98,289 245,341


North


Yorks & Humber North West East Mids West Mids East Anglia Sth East Sth West Wales


Source: The Mortgage Advice Bureau


number of signs at the end of 2011 pointed towards a change in the type of mortgage


market activity we could expect for 2012.


The Council of Mortgage


Lenders predicts another fall in overall activity levels, but towards the end of last year more lenders


“East Anglians were most likely to choose a fixed rate mortgage deal at the end of last year”


Regional lending trends: December 11 Region


36,662 29,176 32,563 37,716 37,315 32,399 75,329 59,682 40,727 134,876


Deposit amount


applied for (£) on application (£) 97,255


began demonstrating that they were open for business by re- pricing certain products more competitively. This re-pricing activity has


resulted in some longer and medium term fixed rate deals falling to historic low levels. This had an immediate impact on mortgage applications in December, with the percentage of applicants selecting a fixed rate deal for a house purchase increasing to 75.8%, up from 70.9% in December 2010. East Anglians were the most


likely to choose a fixed rate deal, with 94.1% of applicants in the region choosing this option. At the other end of the scale, London had the lowest proportion of applicants choosing a fixed rate, accounting for just 52.1% of total applications. Re-pricing activity has also


meant that the 60% to 75% loan to value band looks particularly attractive at the moment. This this bodes well for the mass market, as the average LTV on applications in December was 69.8%, which is comfortably in the middle of this band. Regionally, the highest LTV applications were seen in Yorkshire & Humberside (79.6%), and the lowest, perhaps predictably, came from London (65.9%).


December also saw a number


of lenders increase their exposure to risk, with several big players launching 90% LTV-plus products, which is good news for potential first-time buyers and borrowers with small deposits. The average purchase deposit


stated on applications made in December was £57,088, based on a three-month rolling average. However, there remains big differences regionally, with the largest average deposits in the UK found in London at £129,979 and the smallest found in Yorkshire and Humberside at £23,901. In terms of loan size trends, the


average purchase loan application was made for £135,638 in December, also based on a three- month rolling average. Regionally, London saw the highest loan size on applications at £251,191, while the lowest loan size was found in Wales at £84,159. The average loan size was greater than £100,000 in four out of nine regions. There are a number of


attractive deals currently on offer for applicants looking for a 60% to 75% LTV, and more products available for borrowers with smaller deposits. Barring any unforeseen external shocks, the start of 2012 looks positive for mortgage activity levels.


ripped off for paying 10 times more than they could have spent on a Fiat? The wonderful thing about our commercial democracy is that those who are deemed professional to their clients can rightly charge more. Rising fees reflect improving standards. If everyone was so focused on price, then the 0.5% agent would get all the instructions. They don’t. Richard Rawlings, Director, Estate Agency Insight, By email.


www.the-negotiator.co.uk


We, too, are disappointed with


NFoPP’s indifferent attitude We would like to respond to a letter that appeared in the December issue entitled ‘Are my colleagues and I alone with our attitude to the NAEA’. We, like Alan Howick of Howick & Brooker,


are also disappointed with the National Association of Estate Agents’ stance on membership. We have written to the NAEA on three occasions expressing our concerns regarding licensing, and have yet to receive the courtesy of a reply.


It would appear that despite having been members of the NAEA for almost 30 years, this stands for nothing as clearly the core membership has no say whatsoever and are now being bullied with a take it or leave it attitude.


In the current climate, it is difficult enough running a business and remaining competitive. In light of this increasing pressure, the NAEA has made a decision that is not a viable one to many independent firms. Martin Best, Best Homes, Croydon.


TheNegotiator l March 2012 l 17


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