Overseas buyers benefit from great UK interest rates

For those who are looking to buy a property for the first time in the UK, they are probably going to be very pleased to see that mortgages are at one of their most favourable rates in nearly 3 years. Over the last three years it has been basically impossible to find a mortgage that will offer a rate of below 20 percent, however this situation has just changed.

The Council of Mortgage Lenders, has recently stated that the average amount of deposit has just fallen to 19 percent, which is the lowest level that has been recorded since November four years ago. This is not the only good news that has been released by the CML and they’ve also stated that in July the amount of mortgage lending actually increased, although it is still at a rather subdued level.

From June, the amount of mortgages being arranged rose by five percent to around 50,000, which is also a five percent increase on the same figures from last year. While these figures might look good on the surface, they are still rather disappointing when you look at the figures that were present before the financial recession. The amount being borrowed is around half of that that was seen before 2007.

The director-general of the CML is Paul Smee and he has stated, “The figures in July do shown that a gradual improvement in the lending situation is taking place. It is good to see that the figures are increasing despite the fact that there is no longer relief on stamp duty. Rates are finally beginning to come to the level that were seen during the stamp duty relief period.” One of the reasons why the number of mortgages being arranged has increased is because of various government initiatives that have been taking place.