Locking In Interest
A leading property group released figured yesterday showing a rise in the number of mortgage applications in April.
Council of Mortgage Lenders (CML) claimed that close to 57,000 loans were approved in April a rise of nine per cent from the previous month and the highest figure since December 2007.
This figure might be a sign of a turnaround or it could just be a reprieve for a market that has been in a steep decline for most of the year.
It seems that as soon as talk turns to more positive economic news, more data is release showing the economy is a long way from getting out of trouble.
CML has indicated that there would probably be further hurt before any real growth was established.
“Monthly house purchase lending volumes continue to be lower than levels and there will be a further weakening in coming months as recent approvals data has shown,” CML director general Michael Coogan said.
Borrowers are confident that increasing inflationary pressure will force the Bank of England to raise interest rates so borrowers are trying to lock in a fixed rate.
Higher interest rates mean cheaper houses; better a lower principle than a lower interest rate.
Now might just be the time for first homebuyers to wait because further falls in housing prices will put buyers in a better position even with a higher interest rate. But if you are already in the property market, then refinancing is definitely an option worth considering.
