Mortgage market continues to slow down

Meanwhile, Tesco enters the mortgage market

The mortgage market continued to slow in July, according to the latest figures from Connells.

The total number of residential valuations conducted during July rose by 8 per cent compared to the same period in 2011, but valuations fell 13 per cent compared to June.

Buy-to-let was the only section of the market not to shrink in July compared to June, with the number of buy-to-let valuations also seeing an annual growth of 31 per cent.  

“The UK’s mortgage market continues to feel the effects of the financial crisis across the channel and the ongoing economic recession. Lenders concerned about the impact of a deterioration in the eurozone have been concentrating on consolidating their balance sheets rather than new lending, putting the brakes on valuations activity,” said John Bagshaw, Corporate Services Director of Connells Survey & Valuation. “Nevertheless, the launch of the Funding for Lending scheme could well breathe new life into the housing market as the year progresses."

First-time buyer figures fell by a fifth compared to June but remain 3 per cent higher than in July 2011. The number of remortgage valuations in July dropped by 1 per cent compared to June, though rose by 18% compared to 2011.

Meanwhile, Tesco Bank has extended its range of banking services with the launch of mortgages. Tesco Clubcard holders will be rewarded with Clubcard points as they repay their mortgage. The Tesco Bank mortgage range includes two, three and five-year fixed rate mortgages, and a two-year base rate tracker.