Some people must be making a fortunate buying in and out. Long term this has prospects as a pension/retirement share but still seems to be following a trading pattern for 71-77 and yo yo-ing back and forth.
UK services PMI registered an unexpected rise in August
The services PMI rose unexpectedly to a level of 60.5 in the UK, in August, higher than market expectations of a fall to a level of 58.5. In the earlier month, the services PMI had registered a level of 59.1.
UK official reserves slid in August
Official reserves recorded a drop of $377.0 million in August, in the UK. In the earlier month, official reserves had fallen by $616.0 million.
Since tougher rules and tests were introduced in April, borrowers hoping to have their mortgage approved face a longer wait.
The Mortgage Efficiency Survey, conducted by financial systems firm IRESS, showed that the number of mortgages that take longer than two weeks to be approved rose from 44% in 2013 to 56% in 2014, a slowdown that began even before the new measures were introduced.
The number of mortgages that are approved within five days also declined, falling to 13% in 2013 to 9% this year, almost a third of the figure in 2012, while the number of mortgages agreed via branches fell from 28% to 22%.
The Mortgage Market Review (MRR), which requires potential borrowers to undergo stricter questioning about their spending during the application process, was introduced at the end of April by the City's policymakers.
Under the MRR, banks and lenders are entirely responsible to ensure borrowers can afford the loan, both at the time of applying and when interest rates rise.
"There's no doubt that the MMR has taken its toll on the time taken to secure a mortgage. More comprehensive affordability testing and lengthier interviews have slowed the application process," said Henry Woodcock, principal mortgage consultants at IRESS.
"Demand for mortgage finance has been so strong in the year so far that lending has continued at a rate of knots despite the disturbance."
The MRR also requires lenders to offer formal advice to potential borrowers who decide to apply in branches but customers can also choose to use a financial adviser or a mortgage broker instead.
Woodcock believes the new regulations have contributed to a rise in the number of borrowers who resort to financial advisers.
"Intermediaries have played an increasingly important role helping consumers navigate the murkier waters caused by regulatory change," he said.
"We are likely to see lenders develop their execution-only offerings in the coming year, but that won't diminish the part being played by brokers in securing the best outcomes for customers."
The average approval process for a mortgage normally takes between five and 40 days but it can be influenced by the complexity individual cases, the number of applications a bank has received and its internal process.
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