Mortgage sector is vital to confidence
Posted on July 5th 2010
I did a ring around a good few brokers last week to get feedback on our new products and to gauge how busy the market was.
The last few months have not been great for lending what with the general election and the lack of confidence in the markets and more recently the World Cup and Wimbledon doing their best to distract the nation.
Whilst the feedback wasn’t universal the majority said that they had seen a noticeable pick up in the last few weeks with some saying they were rushed off their feet. Maybe with the general elections out of the way and a coalition government that has got the bit between its teeth some people feel confident enough to consider moving.
Also, anecdotally the scrapping of HIPS was mentioned as having a positive impact.
Clearly the public sector is going to take some pain over the coming years just as the private sector has since the credit crunch took hold but the critical message that public sector debt is going to be brought under control may just be strong enough to create some growth.
Whilst the mortgage market quite rightly is not George Osborne’s No1 priority right now there is no getting away from the fact that we are a nation of homeowners where status is intrinsically linked to the dwelling that we live in. A stable mortgage market is therefore a major ingredient in the creation of consumer confidence.
Let’s hope that the government does not over look this.
