Mortgage market is down but by no means out

"Bad news seems to be the modus operandi when it comes to mortgages lately, so it is refreshing to see a minor ray of hope shining form the latest British Bankers' Association (BBA) figures. They reveal that mortgage approvals we up nine per cent in April compared with the previous month, showing the first signs of a slight recovery. That said, one month doth not make a trend, and the numbers are still significantly down on the same time last year, so May's figures will be of real interest. We can however conclude that the mortgage market has not completely stopped in its tracks," says Drew Wotherspoon of Charcol.co.uk.

"Looking at the figures at a more micro level, remortgaging has increased by 24 per cent in one month and is likely to mean that high street banks have increased their share of the mortgage market. For consumers we can only hope that this has given the banks appetitive to gather more market share in the form of competitive products."

Hard times for sub-prime

"Whilst the mainstream market is basking in a moment of encouragement, there are worrying statistics coming from S&P on the UK's sub-prime borrowers. They have revealed that more than a fifth of these borrowers have fallen behind with repayments. Of course this is only to be expected with the market as it is, but there is a clear message for these consumers - don't bury your head in the sand. Talk to your lender; they have a duty of care to help you with your situation and it is much better to keep them informed than to just ignore your financial commitments. Ignorance is most definitely not bliss."

What products are available now?

"The value is still in the long term market at the moment, with Woolwich's ten year fixed rate excellent for those with good equity and no need to move home for a few years. Equally, term trackers look a sensible move and our own exclusive at Bank Rate +0.99% with no lender fee, free valuation and free legals on remortgages, and ERC's in the first three years is another good product for those with equity. For those that require a shorter-term deal the message is definitely apply now. It looks as if we are about to see another round of price increases from lenders, with Abbey leading the way this week."