Lending figures drop despite historically low mortgage rates.
Low mortgage rates may currently be on offer but recent figures show a fall in lending.
The Council of Mortgage Lenders suggest that mortgage demand is slowing and remortgaging quiet, which has created a 10% drop in lending. This has happened despite falling rates and an increase in the number of products on offer.
There are more mortgage products and lower rates through the funding for lending scheme, but not all buyers have been helped.
Figures suggest Funding for Lending scheme, has some way to go before it positively impacts the UK mortgage market. Rates have reduced but not in all areas. If you have a large deposit you are likely to benefit, but you are unlikely to be so lucky if you have not managed to save more than 10%.
While the Government initiative may have increased the number of mortgages on offer, the impact on the market has not been as large as was hoped, few of the lower rate deals are aimed at the lower deposit end of the market.
Lenders advise due to the high costs of underwriting mortgages, they have to charge higher rates for lower deposit deals. However without more affordable mortgages aimed at lower deposit borrowers the housing market may fail to recover anytime soon.
If you are looking for a low rate but only have a small deposit, contact Deal Direct and we will compare the best rates for your circumstances.
Call an adviser for a quote today.
