The future of the mortgage market in 2009
Anna Cross, Head of Planning and Strategy at HBOS Mortgages delivered a presentation on the future of the mortgage market in 2009 to customers and staff of the Romans Group.
During the presentation, Mrs. Cross explained that the current situation in the financial markets, where the supply of money is so short, is unprecedented, and that the full impact may not have fed through to the greater economy yet. “We hope that the recent Bank of England’s interest rate cut of 1.5% will give a much needed confidence boost to the business sector and to the consumer. However, as long as wholesale money markets remain at their current level, the supply of money to the consumer is unlikely to improve significantly,” explained Cross.
Mrs. Cross repeatedly emphasised the positive news that, although banks are making it harder to borrow money, mortgages are still available. "It is important, now more than ever, to seek the advice of a specialist mortgage adviser when applying for a mortgage, as gone are the days where it was relatively easy to qualify for a mortgage. Banks are now attempting to reduce their lending risk by insisting on lower loan to value ratios (LTV), and consumers may end up paying a higher rate on their mortgage if they do not take the right advice".
Greg May, director of flower Independent Financial Advisers, comments: "The recent interest rate cuts will hopefully bring some relief to the consumer. However, affordability of housing is still a key issue as not since 1987 has the level of the mortgage required as a percentage of income been so high. Whilst the average age of first time buyers has not increased significantly in 30 years, the amount they have had to borrow to get on the housing ladder has. This will hopefully reduce as the market continues to correct itself".
"The banks and mortgage lenders are definitely making it more difficult to qualify for a mortgage and this is likely to continue through 2009," continues May. "Buyers risk not qualifying for a mortgage at all, or being tied into expensive deals if they make the wrong mortgage decision so choosing the right adviser who understands the market is vital if this is to be avoided.
"flower is part of the Romans Group, which has a diverse property portfolio from estate agents to planning and architects. We work closely with senior figures in the mortgage industry such as Anna to ensure we are in a position to correctly advise our clients," continued May.
For more mortgage advice through flower Independent Financial Advisers, contact Greg May on 01344 753 172, or email gmay@flower-ifa.co.uk.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. THERE MAY BE A FEE FOR MORTGAGE ADVICE. THE PRECISE AMOUNT WILL DEPEND UPON YOUR CIRCUMSTANCES BUT WE ESTIMATE THAT IT WILL BE £90. flower Independent Financial Advisers Limited.
