Mortgage growth at slowest rate in two years - Mortgages - News - Moneyfacts


Mortgage growth at slowest rate in two years

Mortgage growth at slowest rate in two years

Category: Mortgages

Updated: 04/07/2012
First Published: 04/07/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
New research has revealed mortgage growth is at its slowest rate in two years, reflecting a continued sombre mood in the housing market.

Despite a rise last month of 16%, there was an annual increase of just 2% in the number of residential valuations conducted, giving the slowest rate of growth since July 2010.

Last month's figures for the first-time buyer market were encouraging, with an increase of 19%, although this is widely believed to be a result of buyers taking advantage of the last few weeks of the stamp duty holiday. The figure was 1% lower compared to last year.

The number of valuations for remortgages fell by 6% compared to last year. The month by month remortgage figure was slightly more encouraging, up by 13%, suggesting that as interest rates remain at their historic low of 0.50%, many borrowers are choosing to remortgage on low tracker rates.

The number of valuations for people moving home provided some light relief, however, with an increase of nearly a quarter (23%) compared to May this year. This in turn meant an annual increase of 4%.

Many people with equity built up in their homes are taking advantage of what is regarded to be a 'buyer's market' and this is reflected in these results.

Positive signs also appeared in the buy-to-let sector, with the number of buy-to-let investors growing by 16% compared to June 2011. Buy-to-let remortgages were also up by 32%, suggesting more investors are looking to remortgage compared to one month ago.

John Bagshaw, corporate services director of Connells Survey & Valuation, who conducted the research, said: " The eurozone crisis has dampened banks' ability to lend, while the double-dip recession is taking its toll on buyer finances. Much rests on the success of the Bank of England's new funding for lending scheme. If it proves successful, lenders will be able to bypass increasingly expensive wholesale markets, boosting the supply of finance and giving the valuations and wider mortgage market a shot in the arm."

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Halloween horrors that put people off a home

Halloween is just around the corner, and many people will be getting their homes ready for a night of spooky fun. However, if you’re trying to sell your home, there are some real-life horrors that could put people off…

Londoners could be saving for a century to buy

We all know how expensive property can be in London and how tricky it is to get on the ladder, but the figures could still come as a shock, with a study finding it could take more than a century for the typical Londoner to save a deposit.

85% of remortgagors benefit from lower rates

Mortgage rates are among the lowest ever recorded, and in the case of fixed rates, they just keep falling! This means it’s never been cheaper to fix your mortgage rate for the long term, and unsurprisingly, remortgagors are taking advantage.