You are here: Home - First Time Buyers - News -

Mortgage market ‘steaming ahead’

Written by:
The number of mortgages approved by lenders continued to rise sharply in December.
Mortgage market ‘steaming ahead’

According to figures released by the Bank of England, 120,000 homeloans were given the green light during what is traditionally a slow month for the mortgage market.

The central bank reported 71,638 loan approvals for house purchase in the month, well above the 65,001 averaged over the previous six months. Remortgage figures remain stable at 34,754 while other loan types numbered 13,340.

Total gross lending secured on dwellings hit £1.7bn in December, above the six month average of £1.1bn.

Ashley Brown, director of Moneysprite, said:

“The mortgage market is quite simply steaming ahead. That the level of house purchase loans in December was even higher than the previous six month average drives home the momentum in the mortgage market.

“You’d normally see a drop-off in December but the demand for property is so strong that this simply didn’t happen. People are more confident and credit is more available, especially for the first-time buyer and those with smaller deposits.”

Mark Harris, chief executive of SPF Private Clients, added:

“We expect this to continue this year as Help to Buy gets into its stride and lending appetite remains strong, with most lenders aiming to do more lending than they did last year.

“Remortgaging numbers continue to rise as borrowers take advantage of rock-bottom mortgage rates, particularly five-year fixes, while the debate rages as to whether the first interest rate rise will come this year.

“While we don’t expect mortgage rates to shoot up in the short term, fixed rates have bottomed out and are starting to climb again so borrowers need to think ahead. However, there is no need to panic just yet; it is still possible to fix for five years at around three per cent, which is incredibly good value.”

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.

Sorry. No data so far.

Guide to borrowing past retirement age

As an older borrower, you may be concerned that a lender will not offer you a mortgage pas...

Mortgage market biased against homeowners

Buy-to-let property investors are unfairly favoured in the mortgage market, an independent...

Should buy-to-let investors ‘go Dutch’?

The Netherlands is revealed as Europe’s top buy-to-let property hotspot

Private sector tenants in poverty double in decade

The number of private rented sector tenants in poverty has doubled in the last decade from...

Large mortgage broker firm launches with fees of over 1%

An insurance firm has launched a mortgage advice service

Second steppers targeting detached properties

Those living in their first home are increasingly looking to reduce the steps to their lon...

Mortgage Calculators

Read previous post:
40% of landlords plan to hike rents

Four in 10 landlords in England and Wales intend to increase the rents they charge this year.