side apply picture

Articles

Strong Mortgage Borrowing

Written By On 30/01/2014

Last year nearly three quarters of a million mortgages were granted to individuals in order to buy their homes according to the Bank of England.

This was a rise of about twenty per cent compared with 2012 when the UK property market was in the slums.

Mortgage loans rose more strongly in the latter part of 2013 with predictions of stronger growth in the coming year.

Last month over seventy thousand mortgages were approved which was the highest monthly figure for practically six years. There were over £12 billion of new mortgages handed out, an increase of fifty per cent on December 2012.

The figures were largely driven by first time buyers who have found it easier more recently to obtain a loan to help purchase their dream. Many of them were aided by the government's Funding for Lending scheme which allowed them to put a deposit of only five per cent down to secure their loan.

Whilst many are concerned of a housing bubble, the numbers are still nowhere near what they were pre Britain's property price tumble.

Chief executive Mark Harris from SPF Private Clients predicts this year will continue to grow, but anticipates that lending will not get any cheaper than it is at present.

He advises anyone thinking of a fixed term mortgage should look into it sooner rather than later.

Mr Harris says:

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.

ARCHIVES