A recent report in the Guardian newspaper claimed that the UK mortgage market is ‘hardwired’ to undermine the population as a nation of homeowners. Despite a short-term boost to the housing market, research shows that by the end of the current decade only a third of young people will own and reside in their own homes. The 25-34 age bracket are the demographic who traditionally would be saving up for a deposit on their first home, yet the unavailability of mortgages coupled with increased rates and an unstable housing market has led to more and more people opting out of home ownership. The study, performed by the Intermediary Mortgage Lenders Association, or IMLA, says that this would place figures at just over half what they were back in 1993.
New government initiatives are beginning to ease funding constraints, but the availability of low deposit mortgages continues to be a problem. Chancellor George Osborne is set to add a couple of ‘sweeteners’ to the housing market in the form of the Bank of England’s funding for lending programme and his own help to buy scheme, yet economic studies suggest that these will certainly not work over the long-term, and perhaps not have much effect in the short term either. The future of the UK housing market remains uncertain, with more and more young couples and families being quite simply priced out of the game.
Older homeowners are also affected by the fluctuating economy, with many considering taking out a re-mortgage or secured loan to pay for home improvements or holidays or to consolidate debt finding it difficult to source competitive rates. Companies such as Norton Finance offer a service which includes comparing rates of hundreds of re-mortgages on behalf of the customer in order to ensure that each individual is able to take advantage of the reasonably priced deals available. By utilising the services of Norton Loans, UK homeowners are able to release some or all of the equity in their homes to fund whatever they require whilst remaining assured that they are not paying over the odds.