The number of UK mortgage arrangements confirmed in July this year rose to 38,181 which is a significant increase from June which saw 35,564 mortgage arrangements agreed. This is the highest monthly mortgage count since February 2008 and while the figures alone are very encouraging it was interesting to note that the average loan size has also increased by 1% to just under £140,000. So what next?
When you consider the increase in mortgage arrangements, positive comments by UK housebuilders and a feeling that the UK banking industry is ready to pump more mortgage liquidity into the system it seems that the UK housebuilding sector has turned the corner. However, it is surprising to see that over the last few weeks there have been a number of downbeat statements on the UK housing sector with some claiming a short-term rally will run out of steam and subsequently prices will fall further in 2010. Even though there is a feeling that the UK sector has bottomed out there is still concern as to why so many people are still remaining so negative for 2010.
Until the vast majority of analysts, mortgage lenders and homebuyers are singing from the same hymn sheet there will be volatility in the sector and there will be changing opinions over the coming weeks and months.
Source: FinancialAdvice.co.uk
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