Getting A Mortgage in Advance

The number of mortgage products on offer has fallen by 76% according to a report by Mortgage monitor, an independent analyst. This has led people to try and negotiate a mortgage in advance of their mortgage term ending. The mortgage sector hit hardest has been the fixed rate sector. The number of fixed rate mortgages on offer has fallen by 82%. Because the mortgage products are being withdrawn at an alarming rate people are seeking to book a new mortgage in advance. For example, fixed rate mortgages finishing at the end of the year mean that people could be left with a large increase in costs, therefore, they want to secure a remortgage now rather than wait.

The mortgage industry has been hit very hard by the credit crisis. It is hard to know how long it will last. HOwever, the Bank of England has offered £50billion and has promised another £50billion if necessary to unfreeze the markets.

Despite the unwelcome increase in CPI inflation, there is also the chance that interest rates may fall slightly by the end of the year, due to the slowdown in the economy.

Asking Prices

Despite a wealth of statistics showing falling prices. Rightmove said that asking prices rose 1.2% in April. However, they argued that too many homeonwers are coming on to the market with unrealistic expectations and asking prices are not being met.