What can I say? "I'm sorry" - for having been away from our blog for so long!
"Where have you been?" I hear you ask. Well, I have been very pleasantly surprised by the level of activity in the market place since the start for the year. I notice this week that the National Association of Estate Agents has commented that demand from buyers is currently outstripping supply. This upturn in acitivity has left precious little time to update our blog!
Anyway, with a moment to spare this Saturday afternoon, I thought we should reacquaint ourselves with a previous entry I made in January. In this entry, I asked if some kind of stabilisation in the housing market was close?
To my mind, this year feels very different to last. This year, we have come to terms with the fact that we are in a recession and we are working our way through.
We have adjusted our lives and expectations. The media spot light has shifted from property prices to MP's expenses, Michael Jackson,and Jordan's love life. So Life goes on!
Last year people were genuinely scared of the unknown. There was talk of banks collapsing and financial melt down. In America, the Bush Administration allowed Lehman Brothers to collapse in September 2008. This was the beginning of the turning point in the global banking crisis.
Following the collapse of Lehman's, the whole banking system was thrown into turmoil. Governments and Central Banks across the globe have been dealing with the aftermath ever since. Robert Peston at the BBC continues to provide an excellent commentary on the finer detail of the banking crisis and the attempts by governments and regulators to deal with the mess.
As a result of the both the structural and attitude changes within the banking sector, we are now working with a very much changed mortgage market...
Gone are the heady days of mortgages for all, easy lending criteria and cheap rates. Good bye and good riddance! What has followed are higher mortgage rates and less choice. But before I induce some form of mortgage related depression, please read on...
This year has seen the return of so many first time buyers. Interestingly, the type of first time buyer has changed.
Prior to the 'Credit Crunch', the average age of a first time buyer was 34 years old. This year, we have seen a range of ages. A couple aged 18 and 19 who have been saving for a deposit since the age of 16, clearly ready and able to buy ~ through to people in their mid-20's.
These are the people who have have been priced out of the market for years because of the super charged property prices caused by the easy lending of the last 10 years. So, good riddance to all that...
Now, a young couple earning £16,000 each can afford to buy a house (yes, a house) within walking distance of our offices. I hope, from the ashes of the banking crisis and the bonfire of the vanities shall rise the Phoenix of affordable, private home ownership with responsible mortgage lending. Now it's down to government, the regulator and the industry to usher in such a golden age. Let's hope they can deliver.
Considering that young first time buyers are now able to afford properties and the official statistics from the Land Registry, Nationwide and Halifax show house prices starting to stabilise; I hope we are now through the worse. The younger first time buyer is the very foundation of a sustainable property market.
For those considering buying now, it is a myth that "you can't get a mortgage".
Mortgage lenders are still willing to lend... at a price and with a big enough deposit!
You need to be on your guard as the bankers are trying to force first time buyer's to pay the price of their mistakes through charging much higher interest rates on mortgages.
Over the coming weeks, we will be devoting our attention to showing you ways to increase your chances of getting approved for a mortgage whilst at the same time opening up cheaper mortgage products to buyers.
It's time to take off the blinkers and think outside of the box as we play, "Beat the Banker"!
If you are a first time buyer and you need some advice and help, why not speak to the experts at Oak Tree Mortgages. Our contact details can be found on our main website www.oaktreemortgages.com
