Island Life Magazine Ltd February/March 2010 | Page 14

life

PROPERTY

February/March 2010

PROPERTY

with Sam Biles
A prosperous
New Year?
The only way
is up?

What does the New Year hold for the Island’s property market?
We have seen more snow than for many years, and a quick
thaw - will the same be true for house sales? Late 2009 showed

With the exception of a brief low in 1996 this is the lowest
burden since 1974. 53,000 house mortgages were advanced in
November which is 66% more than the same month in 2008.

considerable recovery in prices and volumes and much of this

Lenders are returning to compete in the market with improved

improvement has been fuelled by a lack of supply of available

criteria for clients with healthy deposits. The sustained low base

properties.

rate has also been good for borrowers coming to the end of

Buyers seem to feel that ‘the worst is over’ and will not wait

fixed rate mortgages where they can revert to a variable/tracker

for ever to buy their dream home. It does not take much activity

rate linked to Base which is more competitive than their previous

to restore buyer confidence; how sound or fragile this recovery

fixed rate with the added benefit that they are not tied into the

is remains closely tied to the availability of mortgage finance.

lender or to a specific product.

Economic times are still tough but the log jam in the mortgage

Many borrowers have decided against re-mortgaging for this

market is clearing - slowly, for borrowers with good-sized

reason though when the base rate increases these borrowers

deposits and decent credit histories. Mortgages have also

will face increased payments. Lenders still need to lend and

become more affordable in relation to income with figures

in a competitive market this can only benefit borrowers by

from the Council of Mortgage Lenders (CML) showing that

offering a wider choice – but remember: shop around and seek

home movers needed just 10.6% of gross income in November

professional advice.

to cover mortgage interest payments - down from 11.1% in
October.

www.creasey-biles-king.co.uk
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