February 7th, 2013
The Bank of England have again decided to maintain the status quo with the underlying rate of interest in the UK, as well as pausing with any further economic stimulus via quantitative easing. The economy continues to show signs of a sluggish recovery, as Bank of England and Government initiatives take hold to kick-start the housing market. It appears that the positive news will continue for contractors looking to enter the housing market, which is good news for the new man at the top.
The incoming Governor of the Bank of England, Mark Carney, enters the UK economic stage with various challenges, but also benefits from certain stimuli from his predecessor Mervyn King. The Funding for Lending Scheme appears to be putting downward pressure on mortgage interest rates across the board for contractors, with positive news regarding the average UK house price this morning.
Despite a 0.2% fall in the average house price in January compared with the same month last year, the last quarter saw the largest rise in house prices since January 2010, according to figures from contractor-friendly lender Halifax. Mortgage approvals are also on the up for the fifth month running, with most lenders openly stating that they are looking to lend more in 2013 than last year.
When the broader lending figures are applied to contractors, the positive picture continues. Both Halifax and Clydesdale have reduced residential and buy to let rates respectively, and other fringe contractor-friendly lenders have followed suit. As lender standard variable rates remain static or even increase, contractors who have been wary of remortgaging onto rates that offer little saving now have more choice to get lower rates.
The last interesting statistic to digest for contractors has come from the Office for National Statistics, who have indicated that there has been a sharp increase in the number of self-employed in the UK in the past three years. As most contractors already know, the recession has brought about contract opportunities usually reserved for employed contracts. When the opportunity for increased contract earnings are combined with a more appealing mortgage market, it appears contractors can finally start to plan for house moves and refinancing.
Article by: Taj Kang, Operations Director at Contractor Mortgages Made Easy
Media Contact: Raman Kaur, Public Relations Manager
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