Home Buyers and Homeowners Offered More Borrowing Options Than in a Decade

Home Buyers and Homeowners Offered More Borrowing Options Than in a Decade

Last month lenders opened up a new opportunity to borrowers with more mortgages available with only a 5% deposit. According to Moneyfacts, there are now more mortgages being offered to homebuyers than in the last decade. This is great news for home buyers because not only are they facing a vast number of choices in mortgages, but the housing market is reporting a decline in house prices in many areas, especially in London.

Some are worried that the decline in house prices in some areas and an increase in borrowing could put some home owners into negative equity and hinder their ability to borrow for remortgaging. Yet, others are looking at this situation as the beginning of a boom in the housing market that will see first time buyers taking action to climb onto the property ladder.

A similar situation happened a few years ago when a boost in the market by first time buyers increased house prices rather than the expected continue of a decline due to falling house prices along with low deposit offers. Homeowners became obsessed with watching their equity grow and would sign into property listing sites to watch their equity grow day to day.

There are still a great number of hopeful home buyers out there that have been waiting on the opportunity to buy. Whether it would be a scheme offered by the government, a warning that interest rates would be increasing, or lenders tightening lending, or asking house prices declining there were those waiting for the right moment to take action and buy a property.

The same could be said for those looking to buy a second home or even homeowners waiting to grab a remortgage.

There is much being said of an increase to the interest rate by the Bank of England’s Monetary Policy Committee (MPC) again this year and possibly more than once. Such a situation occurring could cost home buyers wanting a mortgage and homeowners seeing to remortgage to lose out on savings that amount to thousands of pounds if they wait until the rate increases.

For home buyers and homeowners that would like to have a variety of options in borrowing, then perhaps now is the time to seriously shop around. With more offers available from lenders than in the last ten years, in fact more than 300 offers, there will be plenty of shopping and comparing to be done.

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