You are here: Home - Mortgages - Buy To Let - News -

Mortgage lending at highest since 2008 in September

0
Written by:
29/10/2013
UK lenders have steadily increased lending since March this year to hit a 66-month high of 15,621 loans in September.

Bank of England figures show a steady uplift which shows the housing market was already gaining strength before the first phase of Help to Buy launched in April.

IHS Global Insight economist Howard Archer said: “While the strength of house price rises in London is becoming an increasing concern and pushing up the overall national increase in house prices, we are currently a long way off from an overall housing market bubble emerging.

Nevertheless, there is a mounting danger that house prices could really take off over the coming months, especially if already significantly improving housing market activity and rising buyer interest is lifted appreciably further by the “Help to Buy” mortgage guarantee scheme.”

Figures suggest mutual lenders are helping drive the market with gross lending up 50% to £3.7bn compared to £2.5bn in September 2012. Lloyds and Santander have also substantially increased lending volumes this year.

Gross mortgage lending hit a five-month low of 52,139 in February this year, but the upswing means mortgage approvals have risen 33.8% year-on-year.

Mortgage approvals remain far below long-term average levels of 84,633 a month since 1993. This rose to 118,969 a month in 2006 and 104,212 in 2007.

Brian Murphy, head of lending at Mortgage Advice Bureau said: “It’s clear that the market is continuing to grow, with average mortgage lending swelling by £1bn in September compared to an average monthly increase of £0.8 billion in the past six months. With the outlook for the end of 2013 and beyond increasingly positive, consumers who have their deposit ready should act now to lock-in to rock-bottom rates before they inevitably rise.”

 

 

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week