UKRE newsflash: Lending confidence improving?

Setting aside the seismic, geopolitical events that are taking place around the world, the English domestic economy is experiencing some changing times also.

Whether it is the upcoming Labour budget on 30th October, or the level of inflation, or even interest rates, banks and building societies often provide helpful indicators on monetary risk appetite as financial barometers of economic health.

With that in mind, it is interesting to read that Nationwide Building Society is now prepared to take a greater financial risk for first time buyers provided that certain lending criteria are met.

With a deposit of 5% being required, and a borrower needing to commit to five or ten year fixed rates, Nationwide is prepared to offer income multiples of six times salary.

If nothing else, this does appear to show some willingness on that lender’s part to have confidence in the direction of travel of the English economy.

We watch with interest to see whether other lenders follow suit on the mainland, and also whether this will transpose to a similar position in Guernsey.

We in the UK Real Estate team at Ferbrache & Farrell LLP follow all such developments keenly, in order that we can act in the best interests of our clients and advise on highly topical matters efficiently and effectively.

If you need further information or legal advice, including conveyancing services in England, please contact our dedicated UKRE team: Anna Douglass, Alastair Hargreaves, Caren Vidamour, and Hannah Damant, who will be delighted to assist.