Movement in mortgage market signals gentle recovery
Wales' largest building society, Principality, has reported a 187% increase in the number of borrowers taking out a mortgage in the first three months of this year, compared with the same period last year.
In fact, the Welsh building society said that February marked its biggest ever volume of mortgage applications since November 2007 - prior to the onset of the credit crunch - with lending for the month stretching over £143 million.
The news follows yesterday's Monetary Policy Committee decision to keep interest rates on hold at 0.5%, which is further good news for borrowers.
Graeme Yorston, Chief Operating Officer, said: "These figures are a good sign of the gently recovering confidence in the housing market. The average mortgage rate has been steadily decreasing since the middle of last year and this, coupled with more affordable house prices has encouraged a healthy mix of buyers."
According to Principality's figures, 21% of mortgage applications received since the start of 2010 were from first time buyers.
Graeme continued: "Any sustainable recovery in the market is dependent on movement from both first and next time buyers. The dual benefit of reduced house prices and mortgage rates, makes buying more appealing than renting, but tightened mortgage criteria and the requirement for a much larger deposit, is continuing to present barriers for those trying to get their foot on the ladder.
"The introduction of a series of measures to help first time buyers get the key to their own home is critical to the future of the market and at Principality we are focusing on developing innovative products that will help to support them in achieving this goal."
According to analysis from Evaluate Technologies, Principality Building Society is one of the top ten most consistently competitive mortgage lenders in the UK, with its products appearing in the best buy tables 8 times in the last three months.
"We are delighted to be recognised as one of the nation's best lenders," said Graeme.
"Mortgage funding has and still is a key issue underpinning the housing market - any disruption to the flow of money can constrain supply. Last year, we focussed heavily on reducing our reliance on wholesale markets and increasing our retails savings, with the result that 100% of loans are now funded by customer deposits. This is a great position to be in and ensures that we are able to offer our customers and members consistently good rates."
"At Principality our core aim since we were established 150 years ago, has been to help working men and women to afford their own homes - this is the mutual ideal and we are committed to continuing with this aim."