Friday 29 January 2010

Coast & Country hunt for the CASH



With homebuyers back in the market and keen to buy, we at Coast and Country have taken the opportunity to carry out a review of the money market: the idea being to get a clear view of where the cash to fund purchases is coming from. We hope that the following information proves useful to those who are currently looking to buy or sell.


In 2007 mortgage lenders lent in excess of £350bn. By 2009 this huge figure had dropped by over 55%. It is obvious that this change in loan funds available has affected the property market. Prices dropped and the number of transactions plummeted: only established and efficient estate agencies were able to maintain sales levels and a number of agencies and lenders withdrew from the market.

Based on research in December 2009, Coast and Country established in more detail why less money was available and the sectors most affected. Buy to let lending has dropped, from £44bn in 2007 to £8bn in 2009, because lenders are only prepared to lend to experienced landlords with larger deposits. Self-certification lending was at a level of £36bn. 2 years ago, whilst non-conforming lending was around £22bn. There are currently no schemes available. The reason for this is the lenders and regulators view that this type of lending was too risky. There are also very few 95% loans available in the market, effecting first time buyers. Additionally a number of lenders including Bank of Ireland, Bradford & Bingley, Mortgage Express, Paragon and others, have withdrawn from new lending altogether. Others such as Northern Rock who lent £29bn. in 2007 drastically reduced lending and last year lent only £3bn.

All in all you would think this represents a petty bleak picture of the market. However things are improving, month by month. In November 2009 mortgage lending was twice that of the previous November. With limited mortgage funds available one might assume that selling your home would be a problem. This is not actually the case if you have the right approach. Although mortgage funds are fewer there is still over £140bn. per year being lent. A tidy sum.

Coast & Country have re aligned business as the market changed seeking quality buyers for their exciting register of property. We have maintained excellent levels of sales by simply hunting down those with access to the cash. That means quality applicants with good financial track records and established finances. As bait for the best buyers we use exceptional marketing and the very best properties, presented in the best possible light. We are able to do this because we know and understand the property market at a local and national level, and advertise and promote our company and properties in a way that really stands out.

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