Just over one in 10 of the UK population are intending to take out or increase a mortgage in the coming six months, research reveals.
Despite the negative publicity received in recent months by the financial services industry, consumer demand for financial services products is fairly upbeat, highlighted in the latest quarterly survey of savings, investment and borrowing intentions carried out by Martin Hamblin GfK and John Gilbert Associates during March.
Th research shows that mortgage demand over the past year – either people intending to take out a new mortgage or increase an existing mortgage – has been higher on averageduring 2003 than in 2002. This trend is continuing with just over one in 10 of the UK population intending to take out or increase a mortgage in the coming six months.
The report also reveals house prices look positive with 10%, the highest proportion of people recorded by the two companies, intending to put down a deposit on a property to buy in the coming months. The trend in intentions to put down a deposit on a property to buy has beenrising since the survey started in March 2002. The proportion of intending property buyers who are aged under 30 has risen from around 35% in recent quarters to 47% in March with some evidence that non-mortgage finance is being used to help out with property purchase.
Market analyst John Gilbert says: “The latest financial activity survey shows that consumers have not lost confidence in financial products and seem set to provide growing sales volumes of business for providers in the coming months. While the saving climate is much improved, with the rise in stock markets and increase in deposit rates providing better returns for investors from financial assets, many now prefer to channel their savings into more tangible forms of wealth aided by the ready availability of credit.
“The demand for housing and housing finance shows no signs of slowing with evidence this quarter of more young people about to enter the market, supported in some cases by family and friends, aware that the country will continue to face a major supply shortage of properties to buy for many years.”