Postitive signs in the finance world are likely to continue in 2013

2012 has been another interesting year for the lending market, with many different reports. Some good and some poor.

There have been government initiatives that have made a measurable difference. George Osborne announced the Funding for Lending Scheme in July 2012 and this has already offered some stimulus to the market. We’ve seen a real price war between lenders, particularly for residential mortgages, who have benefitted from the scheme and there is also good availability of loans at higher loan to value (LTV) ratios. We’ve also seen some of the high street lenders approach businesses to make them aware that they are open to lend funds for the right proposal.

Again in the residential market, 90% LTV deals have reduced in price in the last quarter of the year, making the repayments more affordable to first time buyers who qualify for a mortgage and this should be taken as a positive step.

Kensington Mortgage Corporation has already returned to the market with an appetite to lend and some quirky criteria points which should make lending easier for those otherwise unmortgagble. Their range of products are available to residential borrowers and property investors.

Precise mortgages has expanded its product range and has introduced mortgage deals which are competitive enough to take on many of the high street banks.

More lenders have joined the Buy to Let mortgage arena and the competition between lenders has created criteria shifts which will include more potential borrowers and an albeit small price war. Lenders such as Precise, Kensington and Aldermore (to name just 3) will lend to established or experienced landlords without needing a minimum income threshold to be met.

Just before Christmas, figures released reported “average house prices down 0.3% in 2012, however, when the whole report is taken into consideration it is another positive sign. The report by Hometrack reports that 20% of the country reported an increase, up from 12% in 2011 – so while some regions are reporting tougher times in the housing market, the areas who are ‘on the up’ is increasing. Let’s hope that ripple continues through 2013.

The Secured Loan sector has reported considerable growth in 2012 and predicts a similar trajectory for 2013. New lenders also entered this market for the first time. This shows that lending is out there to access. Industry experts predict reducing rates for secured loans throughout 2013, making the cost of borrowing cheaper for home-owners. There is also a report of potentially six new lenders coming to the market in the near future.

As for politics, there is no doubt that in this continuing tough economic time, any chancellor would be under the microscope. Predictions for the future remain varied, but recent reports that we may have entered a ‘triple dip’ recession certainly cause concern across the markets.

Despite this, Prime Minister David Cameron has stated that chancellor George Osborne will still be chancellor at the next election after growing calls for him to be moved. The fact is, the global economy is under strain and no matter what any chancellor could do, this is not going to change. But in the main, there is some good progress in a very tough global economy.

The concept that borrowing more would bring the country out of recession does not make basic commercial sense, although it may get votes. And let’s face it, no matter what you view of politics and who would be right as chancellor, surely there cannot be a logical brain in the country thinks Mr. Balls could stand a remote chance of doing the job.

Maybe I am the eternal optimist, but there is a lot to be positive about as we approach 2013. Certainly for Harvey Bowes Mortgages which has enjoyed another year of continued and substantial growth.

It is certain that there are opportunities in the market – it is up to us to find them. Evidence from a wide range of reports and from our practical ‘hands on’ experience as mortgage and finance brokers is a clear demonstration that finance is out there to be accessed – and that applies for both SME’s and residential lending.

Easy for us to say as brokers, but it is even more important than ever to use a broker for advice and implementation of a loan. Ultimately, as brokers, we work for you, our client and not the lender. While we have a duty of diligence to employ, our job is to put any finance or mortgage application forward in the best possible light. And using this expertise could make the difference between securing finance and being flatly declined.

To discuss your business or personal funding requirements, please contact on the of the team at Harvey Bowes today on 029 2115 6918.

About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

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