Signs of a pick-up in the housing market have continued, following a further improvement in the latest figures from the Bank of England (BoE), which show a rise in the number of mortgages approved in June.

The figure rose to 47,584 - up from 44,169 the previous month and the highest number since April 2008. The increase marked the fifth month in a row that approvals have risen.

However, the figures are still well down on levels seen at the housing market’s peak and indicate that demand is still subdued.

Net lending for house purchase grew by £343m in June – only very slightly higher than the rise in May. The number of mortgages approved for remortgaging grew to 35,011.

Seema Shah, property economist at analyst firm Capital Economics, said the modest rise in mortgage approvals in June suggested that the upward trend in housing market activity had reasserted itself.

“It certainly needs to because, given the drastically low level to which approvals had fallen at the end of last year, there is much further to go before housing market activity returns to levels that historically have marked the tipping point between rising and falling house prices.”

Source: Mortgage Solutions

What We Say ~ the last six bmv properties we listed for the UK were 'Reserved' within minutes, the fasted being a new record, just 6-minutes.  In fact we are down to our last UK property listing.  But don't worry, we are constantly on the look out for genuine below market value property opportunities and recent conversations with our sourcing agents are encouraging so keep an eye on the site!

If you are currently active, be sure to exploit our 'SMS TEXT ALERT' facility (see website), to receive as early notification as possible.

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Lenders expect to make more credit available: BoE

The Bank of England’s (BoE) latest Credit Conditions Survey has revealed lenders expect to make credit more readily available to households and businesses over the next three months, after increasing lending over the last quarter.

The BoE’s quarterly report showed lower funding costs had boosted the availability of secured credit to households in the second quarter for the first time since the third quarter of 2007.

“While concerns about the economic outlook had continued to bear down on credit availability, the impact had been smaller than in previous surveys,” the report said.

Demand for secured lending for house purchase was reported to have increased over the past three months while demand for secured lending for remortgaging declined further. Lenders expected that demand for secured lending would remain broadly unchanged over the next three months.

Source: Mortgage Solutions

What We Say ~ This is good news for buyers as higher loan-to-value rates coupled with low interest rates will allow investors a rare oppotunity to buy more properties with the same amount of cash.  But as always, one must strike whilst the iron is hot.  

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One or two of you have asked whether this scheme applies to BTL.  In short, 'No' as the scheme is designed to help distressed families "... remain in their homes ...".

Take a look at www.hm-treasury.gov.uk/press but in another nutshell, you must:

• have suffered loss of income
• be in dialogue with your lender
• have a mortgage of no more than £400,000 (before 1st December 2008)
• have savings below £16,000
• apply for assitance
• not be in receipt of mortgage rescue
• pay pre-agreed monthly amount
• have received independent financial advice
• be in arrears

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