The Abbey National has just released figures showing that, for the first half of the year, they had over a quarter of the UK new mortgage market.
A performance at this level means that the Abbey National could take the title of biggest UK mortgage lender depending on the results posted by its closest competitor next week. With an increase of 17 percent compared with the same time last year the improvement is quite remarkable, especially in the current economic climate. In fact a spokesman from the Abbey was pleased to say that they had taken a risk-averse approach to lending, making the huge increase even more noteworthy.
The successful approach taken by the Abbey National has been to look at lower loan to value business, with borrowers basically needing a bigger deposit. Against this growth it will be interesting to see how the main protagonists in the mortgage market plan to win back market share.
A survey carried out by the Abbey National mortgage department suggests that the general view is of house prices stopping their fall within the next 12 months.
Speaking to estate agents the Abbey National found 61 percent of them believing that the prices would bottom out within 12 months, while the majority of homeowners expect it to be even quicker, the concensus being around 7 months. Even the most pessimistic homeowner cannot envisage price falls lasting longer than a year.
With this market view in mind around 80 percent of property owners are happy to wait and let the prices fall a little more before committing to a move. The Abbey National also found a small number of people planning to make the most of the price falls by stepping in to buy and grab a bargain.
Following the trend in the market Northern Rock has announced a cut in its fixed rate mortgages, dropping them down to 6.43 percent from 7 percent.
Anyone looking at getting a fixed rate mortgage will appreciate the reduction but should bear in mind there is an arrangement fee on the Northern Rock products of GBP1,495. As stated other mortgage providers have also been reducing their rates so it is sensible to check the new offers available to find the one best suited to specific circumstances.
Potential home buyers still need a big deposit, this situation unlikely to change for some time yet say Northern Rock. The average deposit needed is around 20 percent currently, meaning first time buyers especially are finding it very difficult to get onto the property ladder.
