2012 Mortgage Forecast - A personal approach is best

The Bank of England has forecast that mortgage lending will remain ‘stagnant’ in 2012. It’s a depressing word and, if you are hoping to move home this year or just renew your mortgage, it can leave you with an overly negative perception of the market. If you are in this situation talk with an independent financial expert who can offer you accurate guidance for your current situation.

Of course, it is always good to have a rough overview of what is happening in the market as a whole. Just over 50,000 mortgage loans were agreed in principle in November 2011, which is a good indicator of short term trends in the property market. This figure is in line with the previous four months which has led to the term 'stagnant' being used.

Equally the Bank of England is concerned about the general economic outlook with rising unemployment and problems with the Euro being citied as their main causes of concern. This is likely to mean that there will be a continuation of mortgage rationing in 2012.

On the plus side, borrowing costs are likely to remain at record lows with interest rates staying low and there have been the first signs of inflation turning down which is also helping to ease borrowing. This can be seen as a real positive, particularly if you already have a deposit saved or equity in an existing property.

Speak with an ESPC Money Management independent financial adviser today about your personal circumstances. They have their fingers firmly on the pulse of what's happening in the property market and know where the best deals are to be had. They will also be able to advise you on the best course of action both for now and in the future.

Call 0845 111 1911 or email fsenquiries@espc.com for more details.

The initial consultation with an adviser is obligation free. Thereafter, ESPC Money Management's charges for mortgage advice are usually £350 (£250 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.