Confidence despite uncertainty

May 6 2008 by Sue Scott, Evening Gazette

A TEESSIDE team of independent financial advisers has issued a bullish analysis of the mortgage market despite the current uncertainty.

And Carterbar says it remains upbeat about the North-east economy in the face of the credit crunch. The team, based at Manor Way, Belasis Business Park, Billingham, has reported a 99% success rate in securing deals for its clients despite the British Bankers Association announcing recently that mortgage approvals were the lowest in March since records began nine years ago.

In the month, there were 129,300 mortgages approved nationally, the lowest figure since September 2000 as lenders tightened up.

Rachel Loynes, chief mortgage adviser at Carterbar, said: “We are aware that some lenders have made it extremely difficult for house purchasers and people coming off a fixed rate.

“They have increased the amount of deposit you need, been far more selective in who they will lend to and increased their interest rates.”

Someone with an average mortgage of £100,000 coming out of a two-year fixed deal could find their interest costs increasing by £175 per month - and that’s if a lender is prepared to accept them.

“Last month saw a huge increase in the number of mortgages declined,” Rachel added. “Carterbar has access to the whole market - if one lender will not make an offer to a client, we can be sure to place it with another.”

Arthur Dornan, director at Carterbar, added: “We remain confident about the North-east economy despite all the uncertainty caused by the problems at Northern Rock and the credit crunch and despite the gloomy reports surrounding the mortgage market. Our customers remain convinced that there are sound investments to be achieved and we are certainly not seeing a pronounced lack of confidence.”