Loan Approvals Rise As House Prices Fall
The situation in the UK housing and home owner loan markets seems to be looking slightly better for those individuals wanting to buy a new house and take out a new home owner loan or mortgage, according to the latest figures to be released.
New research has revealed that there has been a slight decrease in the average price of a house being sold in the UK of 0.1 per cent over the course of the last month and although this is only a small amount, every little bit helps for those struggling to raise a large enough deposit to meet loan to value restrictions.
E Surv’s monthly mortgage monitor also recorded that the total number of new home owner loans and mortgages being approved increased during the month of March, with an increase of 4.3 per cent more loan approvals than in the previous month and a total of 48,979 new loans being approved.
The other piece of good news for potential home buyers is that the survey also found that the average loan to value on home owner loans and mortgages has also increased throughout March, with an average loan to value of 60.8 per cent.
This is the sixth consecutive month that the average loan to value has seen an increase, as banks and building societies slowly start to relax their criteria. The average loan to value has risen from 56.2 per cent during March last year.
David Brown of LSL Property Services said that now was a good time to consider buying a house for those who could secure a loan. “This is great news for buyers who are able to secure finance. High inflation won’t last forever and the low rates fuelling inflation also mean it’s possible to secure good value fixed rate mortgages.”
News Source:-http://www.bestloans.co.uk/
