Precise Mortgages has received approval from the FSA to provide mortgages to homeowners. They are the latest in a series of mortgage lending companies to emerge since the credit crisis.
The company currently makes loans available to buy to let investors and hopes the first of a new series of contractor mortgage products will be launched next month.
The UK is eager to increase financial services competition in the wake of the credit crisis and new challengers have emerged to compete with leading banks Barclays, HSBC, Lloyds and RBS.
Consumer confidence in the housing market has dropped sharply in recent months according to Zoopla.co.uk’s latest Housing Market Sentiment survey. 63% of homeowners now expect to see housing prices increase in the next six months compared to 78% three months ago.
The property website’s survey also shows that average predicted growth has dropped to 3% from 5.5% and 25% of respondents expect house prices to fall in the next 6 months. Three months ago, only 10% thought prices would decline.
Home owners are however slightly more optimistic about the price of their own home compared to those in their neighbourhood. Whilst 1 in 4 expect sellers in their area will see their house price decline, only 21% believe their home will be affected and homeowners also expect their property will perform 13% better than that of their neighbours.
71% of Scots expect to see house prices rise in their area, 62% of the English think prices will increase whilst amongst the Welsh, that figure drops to 61%.
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