You are here: Home - News -

FLS and ‘open for business’ attitude key to mortgage success – Nationwide

by: Andrew Baddeley-Chappell
  • 15/08/2013
  • 0
FLS and ‘open for business’ attitude key to mortgage success – Nationwide
It appears that something is going on in the housing and mortgage market.

Figures from the Bank of England and the CML support the view of a growth in activity driven by first-time buyers.

After four years of remarkable stability in the housing market, albeit at low volumes, we are now seeing an increase in transactions and a firming up of house prices.

These results are not unexpected. It has been apparent for some time first-time buyer activity has been on the rise for some time.

Our own lending to first-time buyers increased by 75% in our financial year that ended in April. As is often the case however it takes some time for activity to flow through into published statistics.

There is no single reason for the change, which ultimately reflects both an appetite to buy and a capability to borrow. It is clear, however, that Funding for Lending has benefited both the cost and confidence over the availability of funding.

Furthermore, the ‘open for business’ message is both more actively promoted by lenders and supported by an increased availability of higher LTV products. Add to this evidence of a bounce back in the economy and there appears to be an increase in that all-important public confidence.

These are early days. The economy remains fragile and is still repairing, while the mortgage market remains win the middle of a period of sustained intervention (with more to come).

It does appear, however, that the market is entering a new and stronger phase. Perhaps it will be more than just the good weather and the cricket that cheers us up this summer.

Andrew Baddeley-Chappell is head of mortgage strategy and policy at Nationwide

There are 0 Comment(s)

You may also be interested in