Conveyancing and mortgages in 2009

This time last year almost every lunchtime and evening news headline featured another bank or building society struggling with spiraling debts, asking for additional funding from shareholders or the government. The UK's financial institutions have since cut back on lending and we've all seen the consequences in the conveyancing, mortgage and property markets over the last 12 months.

With very little or no mortgage lending taking place consumer confidence in the property market collapsed and house prices took a tumble by around an average of 30% in the UK. In the begining interest rates were cut to try and encourage consumer spending and bolster the economy. Then house prices fell; next mortgage products were pulled off the high streets by lenders worried about their lack of funding and losses in the adverse mortgage market. 60 per cent of all UK mortgages disapeared within a matter of weeks.

Today you're unlikely to get a mortgage unless you have a deposit of at least 10 per cent. If your deposit is less than 5 per cent unfortunately you will have a very restricted choice of mortgage lenders and interest rates. With mortgage lenders suddenly tightening their lending criteria, house prices started stalling and then fell by around 20 to 30 per cent over the last 12 months. In the last 3 months, since early August 2009, house prices and mortgage lending
has started to increase month on month. Industry experts are indicating that these are the first 'green shoots' - signs of a recovery.

Conveyancing falls hand in hand with the mortgage and property markets; after all if no-one is buying or selling property there is no need for conveyancing services! Cheap conveyancing quotes are getting easier to find with web site like cheapconveyancingquotes offering free quotes in just 10 seconds!