Mortgage lending hits 11-month high Posted by: melanie
Mortgage lending climbed to an 11-month high in October, according to the Council of Mortgage Lenders. Gross mortgage loans reached £12.9 billion, up 13.3 per cent from September and 4.2 per cent on October last year.
Bien Media client Mark Harris, chief executive of mortgage broker SPF Private Clients, was quoted in the Daily Telegraph, The Times, City AM, MSN Money, Mortgage Strategy, Money Marketing, Mortgage Introducer and Mortgage Solutions talking about the data. He comments:
‘The lending market has certainly picked up in recent weeks, with a significant increase in the number of transactions being done, so it is no surprise that this is reflected in the October data. The mortgage market may still be constrained when you compare it with what it was at the height of the housing boom but it is showing encouraging signs of easing.
‘Money market rates are falling as the Funding for Lending scheme continues to have an impact on pricing and availability of mortgages.
‘This bodes well for next year as we expect this easing to continue. As lenders saturate the low loan-to-value market with a plethora of rock-bottom rates, they will be forced to turn to the higher LTV bracket if they are going to do any significant levels of business, which will mean cheaper rates and more choice for first-time buyers in particular. We are already starting to see one or two lenders – most notably the Co-operative Bank with its two-year fix pegged at 3.99 per cent for those with a 10 per cent deposit – offer cheaper rates at high LTVs.’