Categorized | International

Mortgage Lending Increases in the UK

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In what is a bit of good news for the United Kingdom housing market, overall mortgage lending has increased in the past month. However, with that being said, the number of first-time buyers has declined. According to the most recent reports, the number of actual mortgages increased nearly eleven thousand. The overall value of these mortgages also slightly increased.

For first-time homebuyers, however, the number of overall mortgages fell by nearly three hundred. The decline in first-time homebuyers can largely be attributed to the stringent lending criteria that are currently in place. Furthermore, first-time homebuyers are not able to borrow as much as they were once able to in the past.

Although the increase in overall mortgages should be considered positive news regarding the real estate market in the United Kingdom, many analysts are not so quick to say that the overall market is improving. With the depressed global economy, there is fear that the UK housing market could once again fall into a decline, and thus, analysts are being very cautious with their predictions for future growth. In fact, housing prices are expected to actually decline further into the next year by as much as five percent.

With news that interest rates will likely remain low for quite some time due to the tough economic outlook, many mortgage borrowers are actually opting not to sign a fixed-rate mortgage deal. Fixed-rate mortgage loans have continually declined in the past few months, and most recently, only sixty percent of mortgage borrowers choose a fixed-rate loan.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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