01 Sep 2014

Mortgage Lending Increases

Mortgage Lending Increases

Greig Abercrombie, Independent Financial Adviser, discusses the news that mortgage lending has risen to it highest monthly total since August 2008.

Greig Abercrombie, Independent Financial Adviser, discusses the news that mortgage lending has risen to it highest monthly total since August 2008.

The BBC reported last week that Mortgage lending rose to £19.2 billion in July to reach the highest monthly total since August 2008. 

Even though there has been tougher lending regulations and criteria laid down due to the Mortgage Market Review, this doesn't seem to have affected borrowers in general and as a result, we at Aberdein Considine are seeing more first time buyers coming into the property market boosted by bigger deposits and  the relatively low mortgage deals being made available.

The CPI or Inflation rate has recently dropped to 1.6%, which is below the 2% limit stated by the Bank of England before they need to address any increases in the base rate. This has allowed them some leeway to leave interest rates unchanged for many years since the credit crunch.

We must remain cautious though as interest rates cannot remain at this low level forever, and with forecasts for rates to rise in the foreseeable future, possibly as soon as early2015, then this may have led to the higher mortgage cases going through as borrowers look to get on the property ladder with the historically low interest rates making mortgage monthly payments more affordable.

Should interest rates rise then this may lead some buyers to hold off due to higher monthly mortgage repayments, which may cause a housing market slowdown. Therefore, there does seem to be an appetite for lenders to lend more now and with lower interest rates available, has there ever been a better time to buy?     

Greig Abercrombie, Independent Financial Advisor


Please correct the errors below before submitting your request:

Get in touch

Our dedicated client contact team prefer to receive enquiries through our contact form. We'll endeavour to get back to you within 24 hours or during the course of the next working day.

Source of enquiry