Recent figures have shown that the interest charged on short-term fixed rate mortgages fell to a record low during December.
The average cost of a two-year fixed rate deal for someone with a 25% deposit dropped to 3.49% during the month, the lowest level since Bank of England records began in 1995.
Rates for the loans have been falling steadily since April last year as competition gradually returns to the mortgage market.
Tracker deals for a purchaser borrowing 75% of their home's value also remained competitive, edging ahead to 3.51% during December, only 0.02% above October's record
2011 begins with a boost for the buy-to-let industry, as an increasing number of residential landlords say that they are confident in the marketplace. Findings from the January Upad Landlord Confidence Index show that 63% of residential landlords are more confident than last month, up from 60% in December.
337 landlords responded to the question “Are you more confident or less confident about the buy-to-let market than you were last month?”
Of those who said that they felt more confident, most cited increased tenant demand for properties as the reason. Comments included:
The Independent on Sunday reported that prospective homeowners are bypassing estate agents in favour of residential auctions.
The number of residential properties auctioned over the past 12 months has risen substantially, with more than 25,000 homes on sale in 2010, with more than 100 residential auctions held in December alone, with 2,000 lots sold generating revenues in excess of £370m.
The final quarter of 2010 saw a 10 per cent increase in residential sales compared with the same period a year earlier. Property experts predict the trend is likely to accelerate over the coming year
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Some reports today have been rather uncertain, even negative, in terms of 2011 property market, however certain commentators are more positive about the prospects for potential buyers in 2011.
"Lenders are becoming more flexible and have more funds available, which may lead to a favourable effect on the market in 2011," said Malcolm Waldron, regional director of estate agent Kinleigh Folkard & Hayward Financial Services.
He added: "This is unlikely to encourage an increase in the number of transactions but it could mean a wider range of mortgage products on offer for those borrowers who
The tough mortgage environment in 2011 will impact heavily on first-time buyers, as the large deposits required by lenders and difficulties obtaining finance will continue to keep many from getting a foot on the bottom rung of the ladder.
According to the CML, with funding in short supply, the availability of mortgages for first-time buyers will remain limited, with lenders likely to continue to have only a "modest appetite" for advancing mortgages at higher loan-to-value ratios.
"Mortgage lending will continue to be the preserve of those with large deposits, perfect credit and steady
Although it was reported this morning on BBC News that mortgage lending rose in November 2010, Melanie Bien, director of broker Private Finance, told MSN Money today: "There will be some great buying opportunities in 2011, but the problem will be securing the mortgage finance to do it, as the lending market is likely to tighten further."
This echoes the recent warning from the CML that a critical new era of even tighter lending will be ramped up in the spring.
"From April onwards, lenders will have to repay the funding advanced through official support schemes," a CML spokesman said.
According to reports on MSN today, Halifax, interest rates are likely to remain very low for some time, and they predict no more than one rise to the Bank of England base rate in 2011.
"This will underpin the favourable affordability position for those able to enter the market," said Halifax's Martin Ellis. "The low interest rate environment has reduced the burden of servicing mortgage debt. Typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in mid-2007 to around 30% now, which is an important factor supporting housing demand."
With the property market still weak and house prices expected to fall further in 2011, many commentators are claiming this could be the year to bag a property bargain. New research from the Building Societies Association (BSA) shows that public opinion about buying property in 2011 is positive. According to the findings, nearly two-thirds of us would buy immediately or within the next year, given sufficient money. But while low interest rates and competitive property prices may be tempting you to dip a toe back into the market, is this really the right time to buy?
Should you cash in on
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