Housing market picks up after summer doldrums but activity is still on a slowing trend, says Moneyextra

Amanda Jarvis

October 20, 2004

The average loan-to-value being sought by first-time buyers fell for the third month in a row in September, says Moneyextra, despite a 1.15% increase in property values being sought by first timers. The average property value being looked for, by first-time buyers, rose to £130,4031, up 1.15% on the month, still well down from the highest value of the year, £136,437, reported in May.

The average value being sought by those moving from an existing home rose by 2.71 per cent over the month to £248,580. That’s up 8.12 per cent since the start of the year. The rise in prices for first-time buyers is less marked. Since the start of 2004, average property value sought by first time buyers has risen by just 5.71 per cent.

The overall average mortgage amount searched for on Moneyextra’s mortgage comparison tool in September was £112,682, up just 1.57 per cent on August’s £110,936.

The mortgage market appears to have picked up a little in September after the summer doldrums but all the signs are still pointing to a general slowing down in the pace of price rises and the increases in mortgage size. Average loans-to-value percentages for both remortgagers and those looking to move are below the levels seen at the start of the year.

However, Moneyextra Mortgages says the average loan completed by borrowers using its services in September was £118,193.08, up from £104,699.16 in August. It was the highest monthly average loan value completed this year and lifts the average loan value for the first nine months of the year to £107,756.77.

The most popular mortgage lender in the month of September was also the most popular for the first nine months of the year overall – Nationwide Building Society. The first four places in the top ten over the period January-September were held by mutual lenders, which continue to dominate Moneyextra Mortgages’ “top of the pops”.2

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