In August the Government launched its Funding for Lending (FfL) scheme which offered funding to lenders at low interest rates compared to what they could find on the global lending market.  This helped keep cheap lending available for borrowers in the UK.  Up until now there has been little evidence that the FfL has helped but the latest information from the Bank of England has revealed that there is some optimism that it will indeed have a positive impact.

Due to the FfL there have been mortgage and remortgage offers that have been historic in the scope of the offerings.  Some interest rates have fallen below 3% and that includes fixed rate deals.  While the cheapest interest rates are reserved for those that can meet large equity requirements or deposits the interest rates that are slightly higher are still very attractive.

According to the Bank of England there was a spike in mortgage lending for the month of September.  Property purchases for the month when compared with the previous month increased by 2,103 to 50,024.  Remortgages which have not shown an increase in demand for many months increased by 1,860 to 28,343. 

Nida Ali, the Economic Adviser to the Ernst & Young ITEM Club, remarked on the data saying, “September's increase in mortgage approvals is encouraging, and suggests that the Bank of England's Funding for Lending Scheme may be beginning to have some impact.”

Remortgages and property purchase mortgages are expected to hold with low interest rates throughout the end of the year which should bring more buyers and homeowners searching for great deals.