The current market slowdown, coupled with uncertainty in the financial markets has resulted in increased cost of credit. This has led to a reduction in the number and type of mortgage products now available on the market. Understandably this has left many consumers uncertain as to what options they now have when it comes to buying and selling houses.

According to First Trust Bank Senior Manager, Brendan Dowdall, local people should not panic.

“While clearly house prices have decreased in recent months, the market as a whole has been experiencing a necessary slowdown for some time to more sustainable levels. It is perhaps fair to say that the much-publicised credit crunch as well as increased daily living costs has sped up this period of slowdown.

For many years Derry has enjoyed a thriving housing market. These prices were further heightened by the increase in investors in the area.

“Derry is certainly still viewed by many house buyers as a highly desirable location and we would expect demand here to remain in the medium to long-term.”

According to Brendan Dowdall, although the market may be somewhat different today, customers should take time to weigh up all their options based on solid information and a strong grasp of their individual needs and circumstances.

Changes

“Within this period of uncertainty, our team are witnessing changes in the way people are approaching their future outlook and we are responding accordingly. In the recent past, it was commonplace for homeowners to release equity in their homes to purchase an additional property – now there is a move towards using equity for home improvements such as extensions and loft conversions.

“With the first time buyers market we are also witnessing a higher number of guarantor mortgages being agreed. Within the current climate we would expect this trend to continue as parents try and give their children a leg up onto the property ladder.

“Today’s mortgage marketplace is very different from the one seen just 12 months ago. Responsible and informed lending remains paramount to us when we are dealing with first-time buyer and existing customer mortgage applications.

“Our Home Arranger teams work hand in hand with customers to clarify their options, taking the stress out of any change. For instance, for mortgage customers that are coming to the end of a ‘fixed rate or interest only’ deal, the implications of the new market conditions can be daunting.