Latest news from the property market

Announcing our new online mortgage calculator

We are always trying to improve our services to our customers so we have just made available an online mortgage calculator so you can estimate your monthly repayments, council tax and any mortgage insurance payments.

These are interesting times for anyone thinking about moving home. There is a recovery in the housing market for existing home owners and interest rates in the UK are at an all time low and look likely to stay that way for the foreseeable  future. Interest rates have just been kept at 0.5% for the 79th consecutive month.

According to the  Council of Mortgage Lenders the latest trends are as follows:

  • Activity levels in the housing and mortgage markets have picked up over the last few months after a slow start to the year.
  • Mortgage lending is currently enjoying its best spell since 2008. Our estimate is that gross mortgage lending was £20 billion in September, up 12% on a year ago.
  • First-time buyer and mover numbers are now stronger than a year ago for the third month in a row, although these gains are more limited than for buy-to-let.

There are a number of factors that influence the health of the mortgage market:

UK Economy

The UK economy still looks strong despite slowdowns in China and other emerging markets. Growth in the third quarter of 2015 is expected to be slightly weaker than the second quarter, it’s still forecast to be firmly positive. The rate of inflation, as measured by the consumer price index, fell by 0.1% in the year to September and has been at or around 0% for most of 2015.

Employment figures look strong with the employment rate and level reaching their highest levels since records began in 1971. The unemployment rate fell to 5.4% in the three months to August, the lowest it has been since May 2008. Wage growth also continues to grow at pace, with total pay increasing by 3.0% compared to a year earlier.

The Bank of England’s monetary policy committee continues to reiterate that when the Bank Rate does begin to rise, it will be gradual and to a lower level than in recent cycles.

Housing market

The second half of 2015 has seen a pick-up in activity in the housing market after a slow start to the year.

Low inflation, strong wage growth, falling unemployment and competitive mortgage deals are all helping to underpin housing demand.

Our online mortgage calculator

Our online mortgage calculator helps you estimate your monthly repayments based on the supplied house purchase price, deposit or down-payment, interest rates and other major costs such as council tax and insurance. Visit this link: online mortgage calculator

More information from the Council of Mortgage Lenders here: Market commentary October 2015

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