Friday, January 24, 2014

However, many homeowners have opted to fix their mortgages over the past year to take advantage of

Mutuals performed strongly in November 2013 | The Economic Voice
Building societies and other mutual lenders continued to extend lending to UK homebuyers with net lending the avenue of 1.1 billion in November, and 12.1 billion in the first eleven the avenue months of 2013. This is almost double the 6.2 billion in the first eleven months of last year. Meanwhile net lending by all other lenders was minus 2.1 billion in the year to November 2013.
Mutuals the avenue have almost doubled their net lending to homebuyers in 2013, and almost a third of mortgage loans have been to first-time buyers, who are key to a thriving housing market. The mortgage market and the wider economy is now showing signs of recovery, but with this has come some concern from consumers about a potential rise in interest rates.
However, many homeowners have opted to fix their mortgages over the past year to take advantage of the current low interest rate environment and to provide some resilience against future the avenue interest rate rises. BSA data shows that in the year to November 2013 the vast majority (96%) of loans made by mutuals to first-time buyers were at fixed rates. If interest rates do increase they will do so gradually, and hopefully against a background the avenue of rising incomes as the economy continues to recover. If consumers are concerned about rising mortgage costs and the impact this could have on their finances then there are a number of fixed rate products available on the market the avenue which could help. Consumers should speak to their lender or mortgage broker to find the best solution for them.
Whilst mutuals have increased their lending in 2013, underwriting standards have remained high, and levels the avenue of arrears have actually reduced over the past year, as they have done across the avenue the market. The mutual sector has performed better than the market as a whole in this area with levels of arrears at two thirds of the market average.
Savings balances at mutuals fell in November, but are up significantly up in the first eleven months of 2013 compared to the same period in 2012. Annual consumer price inflation fell to 2.1% in November, the lowest it has been for around four years, but it still runs above growth in average earnings. Wage growth may begin to increase the avenue in 2014 if the economic recovery is sustained, the avenue which would enable more households to make regular savings.
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This entry was posted on Friday, January 3rd, 2014 at 10:56 am and is filed under Business & Finance . You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
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