The Bank of England lending figures for September were released this morning, showing a £1.7bn rise in lending to individuals and mortgage approvals back above 50,000.
Bien Media client Mark Harris, chief executive of mortgage broker SPF Private Clients, commented:
‘The uptick in lending seen in September is caused by a number of factors: increased loan availability, better rates as a result of the Funding for Lending scheme and increased confidence among buyers. Some more realistic pricing from vendors keen to shift stock that has been hanging around for a while is also helping.
‘The end of the double-dip recession illustrates that the economy is very much on the right track, which is crucial for consumer confidence, and should have a further positive impact on the housing and mortgage markets.
‘While house prices have been flat and bumping along the bottom in many parts of the country over the past year, there is positive news on the mortgage front. Even though many lenders have yet to draw down money via the Funding for Lending scheme, money market rates have fallen with some fantastic deals launched in recent weeks, particularly for those with sizeable deposits or similar levels of equity. We now need some of this to filter through to higher LTV deals, so that first-time buyers enjoy more choice at cheaper rates.
‘The publication of the Mortgage Market Review provides certainty and the lack of nasty surprises is welcome.
‘Many would-be buyers have long been of the view that banks are unwilling to lend; hopefully the message is finally coming through that this isn’t necessarily the case.’