Mortgage approvals fall and Help to Buy mortgage scheme introduced

mortgage approvals fallToday according to the Bank of England it was revealed that in February mortgage approvals fell to a five-month low with a figure of near 52 thousand approvals. This makes it the lowest number since September 2012 and comes at a time when the market was showing signs of an increase in activity.

Recently the number of available mortgages has increased with some mortgage rates falling and a big increase in the amount lenders are lending to homebuyers. In February it is reported that Building Societies lent £2.5bn which is a significant increase of 29% from February 2012. (According to the Building Societies Association – BSA).

This does not see the overall lending increase because as the Building Societies see a larger share of the market, mortgage lending has cut back for some banks.

April 1st 2013 saw the government introduce the ‘Help to Buy’ mortgage scheme allowing homebuyers to put down a smaller deposit of just 5%. This however gives the government a stake in the value of the property as an equity loan of up to 20% of the purchase price can be funded.

If you are looking to buy a new home and are in the North Devon and Barnstaple area then please contact us via the opposite form and we will be in touch.

*Information sourced from BBC News

Your home may be repossessed if you do not keep up repayments on your mortgage. For mortgages we can be paid by commission or a fee, typically £250. Most forms of Buy-to-Let mortgage are not regulated by the Financial Services Authority. Think carefully before securing debts against your home.