Signals that positive changes in the economic landscape might take place in 2012 are starting to emerge across the western world, and news from the UK suggests that the housing market could be back on the up again there. Increased investing in propertyis a good sign that economies are moving in the right direction and the uptake of mortgages boosts growth.
In recent months, an increase in house purchase lending and remortgaging in the UK has come about as a result of lenders offering better deals to bring in homeowners. Emortgage Calculator is one such company.
At the start of 2011, the UK interest rate was set at 0.5 per cent by the Monetary Policy Committee (MPC). With little threat of interest rate hikes on the horizon, remortgaging went down.
But since then, lenders have worked hard to offer homeowners attractive deals and the competitive market that has emerged has brought with it better remortgage deals, incentives to remortgage and more remortgage products.
The results came to fruition in August, when the number of remortgage loans increased by 9 per cent on the previous month, and the value of remortgage loans went up by five per cent. House purchase loans showed good progress too, with 52,000 being made in August – a seven per cent increase on the previous month.
Paul Smee, Director General of the CML, said: “Even though it is impossible to ignore the knocks to confidence emanating from the Euro zone, August lending showed welcome signs of life. With those moving house experiencing a record low in the proportion of their income needed to pay their mortgage interest, it is clear that the low rate environment is a benefit to those with mortgages, even against the backdrop of the gloom in the wider economy.”
In 2012, there is hope in the UK that the economy will start to bounce back in earnest as property investors take advantage of the extensive range of below market valueproperties that are appearing in greater numbers in sought-after locations such as London and the south-east of England.
There are plenty of sceptics out there, and the mood in the UK is largely pretty similar to the economic outlook here in the US – gloomy. But the new-year will doubtless hold many twists and turns for the financial landscape in Europe and here in America.
This has been a guest post. Hope you enjoyed it!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.