Prospects for the mortgage market look brighter. That’s the message from recent surveys, based on data from the early months of 2011.

Figures from the Council of Mortgage Lenders (CML) show an improvement after the doldrums of January, with an 8% increase in the number of loans to 32,300 in February.

The number of loans for remortgaging purposes also rose, and it’s expected remortgaging totals will continue grow – as loan approvals reported by the Bank of England are translated into completed deals over the coming months.

There were signs of relief at last for those entering the market, with a significant increase in the number of loans to first time buyers. FTBs typically borrowed 80% of their property’s value, with loans equating to just over three (3.11) times their income on average. And continued low interest rates mean that those moving home typically spent just 9.5% of their incomes on mortgage interest payments.

Meanwhile, industry insiders are reporting rises in mortgage applications, with March figures well ahead of those seen a year ago. Analysts note a rise in product availability, with slightly more lending at higher loan-to-value ratios, and signs of greater competition between lenders. Nevertheless, with much tougher curbs on lending, volumes remain well down on those seen before the credit crunch.

If it’s an exaggeration to say that the market has a spring in its step, it does seem to be going in the right direction.

Tags: Economy, Mortgage, Mortgage Rates, Remortgage

This entry was posted on Monday, April 18th, 2011 at 10:01 am and is filed under Current Market News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.