Insurance News Archive
Lender courage 'could see rise in number taking out property insurance cover'
Written by Jenny Smith
Lender courage has been improving and could see more opportunities for first-time buyers being introduced into the market, which could affect property insurance cover.
Jon Brown, partner relationship manager at iammoving.com, claims that the announcement that HSBC will be offering a 1.99 per cent mortgage could see more people turn from renting to buying.
He says this is "tantalising" but people could be willing to see whether the market will improve further before making the plunge.
"[It may] spark a trend with other lenders offering similar rates with a more accessible deposit, in turn helping Joe Public to start buying houses again," he suggests.
Mr Brown says he expects the number of home buyers increase due to this decision, although the market may not fully recover, which could see a rise in those applying for property insurance cover.
The Rightmove House Price Index recently found that average asking prices have fallen by 2.2 per cent, although it attributes this to sellers pricing their home more realistically.
04 Sep 2009
