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Price rise is on the cards for this year

Everybody will be busy making predictions this month and hopefully there will be more optimism than pessimism.


When you look at market conditions it is hard to see any major differences between January 2011 and 2012.

Buyers still need a big deposit – higher LTVs are creeping in but the underwriting is nigh on impossible. Big deposits get better rates and direct lenders are trying to cherry-pick the best clients.

Interest-only and lending into retirement are still confused areas for most lenders and there is no consistency of policy.

Having said this, I believe 2012 is going to be the year of house price increases. Having seen so many stock market fluctuations during recent months investors will shy away from stocks and settle on property.

The continued toughness in the mortgage market is going to strengthen the rental market and good returns can be made. I also feel 2012 is going to mark a significant change in our holiday patterns and many more will settle for a break in the UK.

We are creatures who like our own space, so the holiday cottage market will also show big returns.

I’m not going to put my neck on the line and say how much properties will rise but they will – mark my words.


MPC vote unanimous again in January

The Monetary Policy Committee voted unanimously to keep the base rate on hold and maintain the quantitative easing programme at £275bn earlier this month, minutes of the meeting have revealed.

John Malone will head PMS for two more years to help ride out recession

John Malone, chairman of PMS, has extended his contract with the company until December 2013. Malone’s contract was due to expire in December 2012, but he will now stay on for a further 12 months. He revealed his decision at PMS’ 15th anniversary celebration in London last Wednesday. Malone tells Mortgage Strategy: “I’m enjoying working […]

Resilient market saw loans rise in November

A rise in mortgage lending in November has been welcomed as a sign that the market is holding up well amid the economic worries. Data published by the Council of Mortgage Lenders last week shows there were 47,000 loans for house purchase worth £6.9bn advanced in November 2011, up 3% by number and 5% by […]

Barclays to give brokers an underwriter per case

Barclays has announced that it will assign a specific underwriter to each mortgage application that brokers submit. From today, brokers will be called by a Barclays underwriter after submitting each case to discuss the application. They will also be given the underwriter’s direct number so they can contact them if they need to discuss the […]


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  • Mortgage Solutions 27th January 2012 at 1:00 pm

    House prices may increase this year but i feel this will be reflected on investment properties as buy to let soars this years like last year you will see first time buyers missing out opportunities as investor and landlords buy up property to increase porfolio’s hence a sligh increase in house prices.