A FINANCIAL advisor who works in Rugby has given his account of the current mortgage market.
Paul Reynolds, from Mortgage Advice Bureau, can help you learn how the Bank of England’s decisions and the crisis in the Eurozone can affect you.
He said: “Following last month’s decision by the Monetary Policy Committee to re-introduce their programme of Quantitative Easing (QE), the expectation is that we are unlikely to see further intervention until the effects of this can be assessed.
“As a consequence the base rate has remained unchanged and the level of new money injected into the economy through the purchase of assets including government bonds remains at £275bn.
“The Eurozone crisis continues without a real resolution on the horizon and appears to be deteriorating, with Italy now the main sovereign debt concern of the markets although the proposed Greece bailout has yet to be ratified.
“In spite of all of the international bad news and continued weakness in consumer confidence in the UK, the mortgage market has remained remarkably resilient. Although overall new mortgage activity in October was down by around 10 per cent compared to September, remortgage borrower numbers have increased by almost 9 per cent.
“Mortgage product pricing remains at all time low levels in October, with Moneyfacts reporting the average two year fixed rate as 4.22 per cent and the average five year fixed rate has reduced further to 4.73 per cent.
“This appears to have encouraged increasing numbers of remortgage borrowers to take advantage of current pricing.
“October witnessed overall mortgage product numbers increasing, having reduced a little in September they returned to levels similar to August.
“Brokers currently have access to around 7,500 deals, over 50 per cent more products than in the same period last year.”
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