A study last month by Moneyfacts.co.uk has shown that the number of mortgages on the market is greater than 3,000 for the first time in 15 months and 42 per cent more than were on the market last July.

Recent additions that investors are to note are the introduction of a new 75% LTV product by Aldermore to compete with the likes of Birmingham Midshires, Cheltenham & Gloucester & Natwest as well as the emergence of the first 80% LTV we have seen in a while by the Mortgage Works.

Nationwide also announced today that house prices are 9.5% below their 2007 peak with transaction volumes still relatively low despite a slow return of more sellers in recent months. It is likely that the announcement of anticipated capital gains increases may prompt some landlords with more than one property to sell before tax rates go up which will shift the demand-supply balance back in favour of buyers, halting house price rises.

Buying below market value today and locking away equity is still very wise when taking the medium to long term view, particularly if buying wisely for monthly cashflow as well as growth.

25th November 2009

According to Moneyfacts, the average interest on a 2 year fixed rate mortgage has fallen below 5%.  This is largely the result of the easing of inter-bank credit supply as well as revived competition between mortgage lenders as new (or returning) lenders come into the market. This is good news for borrowers as it is also leading to an easing of the general lending crieria attached to mortgages (e.g minimum income, arrangement fees, rental coverage…etc).