The big news in the mortgage market is the publication of the FSA's long awaited consultation paper on responsible mortgage lending, which could put an end to Self Cert and Fast Track mortgages.
Another recommendation is that affordability should be assessed on a 25 year repayment basis, even if the subsequent mortgage is on an Interest only basis. Although many see these proposals having a positive impact in the longer term there are concerns some of the proposed changes of the 180 page document could suppress mortgage lending further. However I would point out at this stage it is only a consultation paper and I am sure you will agree lenders criteria has tightened so much in recent times they are already 80% of the way there. How many Self Cert mortgages are currently available?!
Good news this week from the Council of Mortgage Lenders. They have stated gross mortgage lending rose 15% in June. Gross lending stood at an estimated £13.1 billion, a 7% increase from last June's £12.2 billion. CML said the second quarter of 2010 had seen a 17% rise in gross lending on the first quarter.
Coming soon, with the 30th September looming, what happens post HomeBuy Direct?
New Build Sales Director
The New Homes Group