Uk Mortgage Lending Still Suffering Post Boom Hangover

April 27, 2010 - PRLog -- Gross UK mortgage lending in March hit £11.5 billion, up from £9.3 billion in February, according to the CML said, a 3 per cent rise on the same month last year.

However, mortgage lending seasonally rises this time of year, because spring and good weather is traditionally a time when more people buy property, and the figures should be viewed with caution, says mortgage and property website, http://www.obligo.co.uk/ as lending for the quarter was still 24 per cent lower than the final three months of 2009 — the lowest quarterly lending total since the start of 2000

Lending fell sharply at the beginning of the year following a December spike in anticipation of the end of the stamp duty holiday and the rise of VAT that saw borrowers potentially thousands of pounds out of pocket.

According to the Times Online, an economist for the CML said that the housing and mortgage markets remained “quiet and subdued”.

“Despite the increase in activity late last year and a subsequent fall early this year, the underlying position looks to have barely changed. But with the gradually improving economic backdrop and interest rates still low, we continue to expect a gentle improvement in market conditions later in the year.”

A spokesman for property and mortgage website, obligo.co.uk added “banks and lenders still face the chilling prospect of around £200 billion of government support schemes ending from early in 2011, and will need to find alternative funding sources to avoid a replay of the credit crunch. With lenders and banks having one eye on 2011 it will inevitably lead to a continuance of lending caution and its knock-on effects to the housing market. At Obligor we think that now is a good time to get a foot on the property ladder as there are some bargains to be had and there are some good mortgage deals that may not be there next year.”

Special schemes such as the Special Liquidity Scheme, designed to shore up lending markets have so far loaned more than £180 billion to financial institutions, will begin to close next year.

About obligo

Obligor is a new mortgage business based around a revolutionary concept that will provide consumers with tools and information about UK mortgages, whilst retaining a human aspect to case underwriting and application management.

Obligo intends to change the way UK consumers approach mortgages. Obligo is a unique collaboration of information and resources from both the UK mortgage and property markets.

Features that have recently only been available through websites and entities are collectively presented to the consumer in a simple, easy and effective manner.

Real-time house price information, automated property valuations (AVM), consumer guides, market analysis and expert market commentary is available together with industry leading mortgage calculators and application tracking systems.

Obligo Ltd is a privately held company with a highly experienced and proven management team with proven track records in start-up acquisitions and sales in the mortgage and other sectors.

The founders have set a course in the changing world of financial services to deliver transparency and efficiency to the UK mortgage market.
for more information email chris.gardner@obligo.co.uk

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Article Title: UK mortgage lending still suffering post boom hangover

Authors URL:  www.obligo.co.uk

Author Name: Chris Gardner

Contact email: chris.gardner@obligo.co.uk

Author Blog: www.obligo.co.uk/blog


Resource Box must be included

About the author:

Chris Gardner (chris.gardner@obligo.co.uk.) is a director of Obligo, the UK mortgage and property portal. Obligo provide consumers with free tools and information helping them to make well informed mortgage and property decisions.

Read more about Obligo, other mortgage and property related articles at http://www.obligo.co.uk/grapevine.html, for free mortgage tools and information go to www.obligo.co.uk

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Obligo is a free to use consumer website for UK mortgages. Obligo provides free property valuation, mortgage tools and access to mortgage experts. obligo engages with consumers and empowers them to make well informed mortgage and property choices.