Mortgages are becoming more affordable in the UK, research has shown.
Home loan packages such as are becoming more affordable for consumers in the UK in the aftermath of the global economic downturn,
new research has suggested.
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 - 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 get on the property ladder are also playing an important role, she added.
In related news, gross lending from mutuals on home loan products such as tracker mortgages increased last month, new figures have shown.
According to data published yesterday (August 30th) by the Building Societies Association (BSA), financiers provided £2.1 billion worth of mortgage finance throughout July.
This represents a six per cent hike on the number recorded in the corresponding month in 2010 and also contributes a cumulative rise of 17 per cent in favour of the opening seven months of 2011 against January-July last year.
Adrian Coles, director-general of the BSA, observed these numbers display "signs of strength in a relatively difficult operating environment" in the aftermath of the global economic downturn.
He went on to label the figures "an encouraging trend in the face of continued uncertainty".
This comes after a study by Halifax last week (August 27th) showed that the proportion of disposable earnings devoted to mortgage repayments by individuals has reached its best figure since 1999.
