The UK mortgage market looks set to improve offering borrower's cheaper mortgage deals as banks agree to finance support conditions. Banks have agreed that borrowers will be able to get more competitive mortgages with rates set to return to 2007 levels and for at least three years.Welcome news for UK homeowners as good mortgage offers have been disappearing since the credit crunch bit.
The banks have also said they will be better mortgage deals for all as they agree to support schemes for those struggling with mortgage repayments to stay in their homes and to support expansion of financial capability initiatives. Banks taking the government financial help will have to achieve a certain level of funding therefore will need to increase lending so we should start to see a more competitive market and better choice of mortgages available. A recent survey of mortgage brokers revealed a return to cheap mortgages for all view is expressed by this group also suggesting a return to a more competitive mortgage market as prevailing in Cochin Real Estate . Mortgage brokers' forecast improved future business compared to May or July this year.
Much more positive outlook than was given in May this year of a predicted fall of almost 5 per cent for first time buyer business, 3.6 per cent for home movers and 3.4 per cent set at 3.4 per cent. Peter Williams of the intermediary Mortgage Lenders Association executive director, said: "These survey results which were obtained before the latest volatility in international markets appear to offer a glimmer of hope that confidence among mortgage brokers is starting to return, very slowly." So mortgage brokers also believe the market will return to levels seen before the start of the crisis last year. Although a cheap mortgage may take some time as a recent Bank of England credit conditions survey points towards tighter lending criteria in the fourth quarter.