Research: Mortgages becoming more affordable [mortgagehelps.blogspot.com]
In this Mahoney Money Minute, Belmont Savings President and CEO Bob Mahoney looks at mortgage affordability. 2011 saw an all-time low in mortgage cost in percentage income since at least 1975. Mahoney also points out favorable rent to buy ratios in many parts of the country, indicating it may be an affordable time to buy a home, as opposed to renting.
mortgagehelps.blogspot.com Mahoney Money Minute -- October 24, 2011 -- Mortgage Affordability: Now May Be the Time to Buy
If your loved one is struggling with mortgage affordability (and has been for quite some time) because they're attempting to live beyond their realistic means, giving them money is only putting a flimsy band-aid on a problem that requires major surgery. How to Support a Family Member Who Can't Afford the Mortgage
A study published recently (August 27th) by Halifax revealed that the proportion of disposable earnings devoted to mortgage repayments by individuals has reached its best figure since 1999.
The survey - which is designed to track affordability for all people across 382 districts in Britain - established that the average loan-to-value rate attached to home loans stood at 28 per cent in the second quarter of 2011.
This represents the lowest level recorded for around 12 years and is significantly better for purchasers than the 48 per cent posted in the third quarter of 2007, just before the recession took hold.
Recently, Ben Wilkie of What Mortgage stated that mortgage rates are set to remain subdued in the near future as banks recover in the wake of the monetary slump.
Meanwhile, confidence is returning to the Scottish mortgage sector, it has been said.
Confidence is set to return to the Scottish mortgage market sooner rather than later due to a number of factors, an expert believes.
Research published last week (August 22nd) by Lloyds TSB showed that the average price of a property north of the border slipped by 3.7 per cent in the three-month period leading up to July this year.
However, according to Dianne Paterson, residential property partner at Russel + Aitken, positive sentiment will come back among consumers searching for home loans - such as tracker mortgages - in the near future.
Ms Paterson explained that despite a recent decline in the cost of housing, both buyers and sellers are now "desperately" attempting to uncover methods of moving within the market, meaning their "endless enthusiasm" will undoubtedly restore a level of confidence in the coming months.
Meanwhile, government schemes targeted at helping prospective first-time buyers get on the property ladder are also playing an important role, she added.
In related news, Consumers seeking the security of a long-term fixed rate mortgage may be interested in a new set of home loans on offer from one financier.
As of today (August 26th), Chelsea Building Society has enhanced the figures attached to many of its products in order to provide more attractive packages to individuals in these uncertain economic times.
For instance, prospective homeowners wanting the safety of a mortgage fixed for a ten years can now benefit from a rate of 3.99 per cent, while those looking for a slightly shorter alternative may prefer one of the company's five, six or seven-year deals.
Chris Smith, direct mortgage manager at the organisation, said alterations to these products and some of its tracker mortgages have been made on the grounds of customer demand and added that "further falls in swap rates" have enabled the group to pass savings on to its members.
Recently, the Council of Mortgage Lenders revealed that home loan approvals in Scotland went up significantly in the second quarter of 2011.
