Mortgage Lending On Its Way Up Including Remortgages

Mortgage Lending On Its Way Up Including Remortgages

By:


Mortgage lending is set to double returning the housing market to sustainability. Including remortgages.

The promising forecast was made by top boffins at the Centre for Economics and Business Research a highly regarded think tank.

Its research showed that house prices are now expected to grow by 16 per cent over the next four years.

The rise will return property to its glorious 2007 best and can mean the typical property could be worth 30,000 more.

The predictions are made on the expectation that banks will relax the rules on giving out mortgages.

The difficulty in first time buyers getting mortgages has been a major obstacle in getting the mortgage and remortgage markets back to their pre-crash best.

Although the experts believe house prices will fall during the rest of 2011, from the start of next year they expect prolonged growth.

The think tank calculated that the average property price across the country is now 175,000.

It expects that by 2015 that figure will have risen to 205,643.

This will be the result of a four per cent year-on-year growth, it claims.

Douglas McWilliams, from the Centre for Economics and Business Research, said: The main factor driving house prices up is the shortage of available housing which has already pushed up rents.

Housing completions fell to only 130,000 in 2010, well below the level required to keep pace with demographic change.

But the factors that will ultimately drive house prices up again are the loose monetary policy that will accompany the Governments deficit reduction and the ability of banks to lend again on consumer-friendly terms as their own underlying financial position improves.

This should not be confused with boom and bust. We are forecasting a gradual four-year recovery at an annual rate of about four per cent.

Max Erskine from remortgagenow.co said: This is quite wonderful news if it plays out.

Predicting so far ahead is not foolproof, and I dont expect the brains at the think tank would claim as much.

But at the same time they dont want to look like idiots and would not predict a house price rise and improved mortgage market unless they believed it.

Their report was also based on the belief that the housing market was about as bad as it could get so there was only one way it could go up.

While the outlook is gloomy for the rest of this year it is set to pick up after Christmas.

To really get things going in the mortgage and remortgage markets, first-time buyers need to be encouraged.

If banks do make it easier for people to get on the property ladder then I can certainly see these predictions coming true.

And if house prices do rise, remortgage deals will become more popular as home owners will find more equity in their properties.

About the Author:
Visit remortgagenow for expert remortgage advice



Article Originally Published On: http://www.articlesnatch.com


Tags: ,

|

Loading...
Related....
Videos...

Recent Business Articles

Comments

Still can't find what you are looking for? Search for it!

Loading

Site Navigation:

Copyright 2005-2011 ArticleSnatch, LLC - All Rights Reserved.
Privacy Policy | Terms of Service.