BTL and FTB’s undeterred by market conditions
A curbing in the growth of the UK housing market has not totally doused consumer demand for new mortgage products suggests a new study.
Accordingly, sizeable numbers of British homebuyers are said to be snapping up higher value mortgage products, with the bulk of the demand being fuelled by both the FTB and buy-to-let market. However, the report also indicates that faired against the same time last year, the number of newly issued mortgage applications has dropped by a substantial margin.
Commenting on the figures, one analyst suggested that almost 30% of newly completed applications were for products that fell within the 100% LTV group. What this effectively means is that fewer conventional mortgage products have been sold indicating the vast majority of buyers have put their plans to find a new home on hiatus.
However, buy-to-let investors still appear to have confidence in the housing market, as demonstrated through an increase in demand for products geared specifically towards their sector. On the other side of the coin, FTB’s appear to be allowing desperation to dictate the decision making process with regards to owning a new home, with many committing to plans described as being “financially taxing”.
In related news, recently released Government figures suggest that home repossessions are likely to rise by more the 50% in 2008.
