More lending on home owner loans

It is encouraging to see the first signs of consumer confidence appearing on the housing and home owner loan market again.

The recent figures demonstrate that there was an increase in the number of new home owner loans and mortgages in April, compared with March.

The Bank of England has informed about a small increase in the number of new home owner loans taken out in April, (49,871, compared with 49,008 in the previous month).

Although such an increase is not substantial, it is the highest recorded this year and many financial experts regard this as a promising sign.
In all likelihood, consumers will be encouraged to take out home owner loans due to new loan products with eased lending terms and higher loan to value levels introduced by lenders.

However, it has been revealed that remortgaging has not been popular lately, as borrowers are not inclined to switch lenders.

Darren Cook of  comments that loan providers are finally easing their lending criteria and there are an increasing number of mortgages that can be availed with a deposit of 20% or even less, but they have a premium of a higher rate.

Although there are hundreds more mortgages available on the market today than in January of 2010 and the rates are being decreased, a growing number of borrowers returning to standard variable rates as low as 2.5%, having no motivation to shop around for another mortgage deal.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.