Mortgage availability hit a five-year high in the third quarter of the year, the Bank of England said in its recent Credit Conditions Survey.
However, applications for these home loans were largely restricted to those who could offer a hefty deposit.
Peter Williams, executive director of IMLA, said: “The outlook for the rest of the year looks positive, and over the next three months we are expecting to see a rise in the number of competitive mortgage products being launched by lenders.
“The Funding for Lending scheme is enabling lenders to reduce the margins on top of their borrowing costs and this, coupled with lenders’ market share objectives and the improvement in credit conditions in recent months, has seen availability increase and average rates moving down.
“While the latest Credit Conditions Survey suggests lenders will spread this increase in secured credit across loan to value ratios, it is important the focus is on the higher end of the scale with products aimed at first-time buyers and second steppers. This is where the market needs most support and without greater access here it will act as a drag on the rest of the market.”
David Sansome, Managing Director of Sansome & George said: “The mortgage market has shown some signs of being more flexible in recent weeks with lenders competing for business across the market with more attractive interest rates and higher loan to value schemes.
My advice for any would be home buyer or buy to let investor is to seek professional advice as it may be easier to realise one’s moving plans than people imagine from the generally negative news in the media.
Our professional mortgage advisers will be pleased to discuss individual’s personal circumstances and, in complete confidence and without obligation, advise accordingly.“