Mortgage lending hits 7 year high
Gross mortgage lending in the UK is now at its highest level since 2008, new reports show.
New data from Council of Mortgage Lenders (CML) has seen lending figures increase 29% in June. The total amount borrowed for new loans has been estimated at £20.5bn, compared to a figure of £15.9bn from the previous month.
Buy to let loans saw an increase of 1% in the month of May this year with the total number of loans increasing to 19,100. Compared with the same month in the previous year, buy to let lending has risen by 22%. The total value of buy to let loans hit £2.7bn in May, while remortgages have experienced an increase of 35% year-on-year.
The news followed on from house prices in the UK hitting record highs, with average prices now exceeding £200,000.
Graham Davidson, Managing Director of Sequre Property Investment, comments on the increase in lending –
“The fall-out from the mortgage market review (MMR) seems to have flattened out as we look at a much healthier mortgage market.”
“Whilst lending for buy to let has experienced just a slight increase, this is still an impressive rise considering the uncertainty many people were expecting surrounding the election. These figures reflect the strength and confidence within the housing market, something which continues to improve thanks to the low interest rates and fantastic mortgage products on the market.”
“Internally, we’ve certainly seen a rise in the level of interest for buy to let property. With buy to let recently being unveiled as the best performing asset class over the past 18 years, its popularity has surged. Unlike other investments such as ISAs, stocks and shares, property is a tangible asset that is considered a much safer investment. When the right property is purchased in the right location, it will experience capital growth, as well as rental income, for many years to come.”
If you’ve been considering taking out a buy to let mortgage, or remortgaging an existing property in order to fund a property purchase, Sequre can recommend mortgage brokers who can talk you through the process. We work with professionals in the finance industry who can source the best deals on the market for all personal situations. Whether you’re looking for a straightforward mortgage, or a need to refinance your portfolio, contact us today on 0800 011 2277.