Mortgage deals to improve for UK property investors
Buyers could get better deals on their mortgages next year as competitiveness returns to the lending market, according to one mortgage specialist.
Mortgage force predicts that the market will see an improvement in loan-to-value rates and believes interest levels will become more affordable for 90% mortgage deals.
The value of house purchase loans for November 2009 reached £6.6. billion according to the British Bankers' Association. This represents a year-on-year increase of over 200%.
Katie Tucker, technical manager at mortgageforce, said: "The main thing next year will be competition – the lenders will return to competing with each other. As a result of that, they will be more flexible with their credit scoring and underwriting again."
She added that lenders have been "overcautious" this year and "have refused loans to perfectly legitimate borrowers.
Statistics released recently have suggested that the property market is improving globally, as well as in the UK. The latest Knight Frank Global House Price Index revealed that almost 70% of countries experienced property price increases in 2009, despite values still being down year-on-year.
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