Househunter Numbers Rising after Two-Year Calm

The number of first-time buyers and ‘homemovers’, or those offering properties for sale to buy another, rose between September and October. Homeowners may be losing out because of the huge drop in their property’s value but the falling prices are finally starting to attract buyers. With the overseas market weakened and demand and supply more closely aligned, the value of luxury properties has also fallen. A recently published report by the Royal Institution of Chartered Surveyors shows that the number of househunters has risen for the first time in two years. Additionally, there is a larger number than ever of competing mortgage products on the market, a massive 204 more than in August 2009.

Notwithstanding the well-documented state of the struggling mortgage market, there are still many who reckon there has never been a better time to buy. The down side is that further restrictions on the mortgage market are imminent as a result of tightening regulations, the affect of the withdrawal of Government support schemes and the drought in funding are political measures that are a frustrating reality for many borrowers. Lenders’ high underwriting standards in tandem with extended mortgage offer timescales create tangible problems for many.

Over the summer months there was a clear increase in fixed rate mortgages, many borrowers opted for the reassurance of future certainty in this kind of market climate. The scales have now balanced with a pretty even take up of new tracker and fixed-rate mortgages.

When embarking on the tricky journey of purchasing a property it’s shrewd to enlist the services of a mortgage-broker specialist for help and assistance. Prospective buyers are encouraged to seek the very best advice to lessen the anxiety and disappointment that comes with failed finance. If possible it’s good sense to establishing pre-approval for a mortgage before embarking on serious discussions with sellers and estate agents.

Increased regulation from the Financial Services Authority (FSA) will make finance less accessible for some borrowers. On the plus side, as a consequence many lenders are seeking quality borrowers and have some surprisingly attractive terms on offer. However, it can be a challenge to match up the right lender with their ideal borrower and at this point it’s vital to get some reliable, qualified advice.

Experienced real estate companies are skilled at match making borrowers with lenders, and to ensure the timings are right for accessing mortgage finance plus making sure it comes at the right cost. The FSA will shortly be producing a review into the mortgage industry, with industry feedback delivered by November 2010.

It’s crucial now that the mortgage market is opened up to provide interest-only and self-certified mortgages options for more people such as first time buyers, contract workers and the self employed, otherwise many will be harshly affected by the proposed regulations if they are put in place.

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