Mortgage lending falls in August Posted by: melanie
The latest data from the Council of Mortgage Lenders shows that lending slowed in August compared to July, the first month-on-month drop in lending since February.
Commenting, Bien Media client Mark Harris of mortgage broker SPF Private Clients, said: ‘Lending dipped on all fronts in August compared with July as one would expect for this time of year, but we had one of our best months ever for new business – emphasising the continued underlying strength of the London property market in particular.
‘While lending was higher across the board than in August last year, bar remortgaging, there is a sense of things slowing down. August, of course, tends to be quieter than other months and as we head towards the end of the year, lenders will be doing their very best to entice new customers in an effort to meet their year-end targets. It might be giveaway iPads or rock-bottom fixed rates but there are plenty of deals on offer.
‘It is curious why remortgaging remains weak given the historically cheap rates available. As these are not proving enough of a draw, it is unlikely that numbers will flock to remortgage until an interest rate rise is imminent. Some borrowers may be concerned about their ability to remortgage given the new affordability criteria and may find themselves stuck on their lender’s standard variable rate when rates do start to rise.’