Homeowners that have held out on getting a remortgage or are close to having their mortgage deal end soon will find that lending has eased somewhat and that interest rates are phenomenally cheap.  Lenders are optimistic about lending and are showing their optimism by offering low interest rates, more realistic loan to value levels and are becoming competitive for borrowers.

According to the Intermediary Mortgage Lenders Association (IMLA) members mortgage lending will increase in 2013 and it will be due to higher demand from first time buyers and homeowners seeking to remortgage.  The IMLA members account for over 80% of lenders in the intermediary sector.  They expect that gross mortgage lending could level out at £150 billion by the end of the year with a net lending value at £9.3 billion.

The IMLA has estimated that there will be 940,000 transactions for this year but 40% of the members felt the number would be higher and 20% expect that transactions could reach over 1 million in 2013.

IMLA chairman David Finlay remarked, “With the MMR approaching in 2014, there is a real need for clear definitions on advising or arranging transactions, and both lenders and brokers will be keen to know how pipeline business will be dealt with when the changeover arrives.

“We are also committed to working with organisations such as the CML, the Association of Mortgage Intermediaries (AMI) and the Building Societies Association (BSA) to explore a solution to the issue of individual broker registration, to help to uphold standards of quality and professionalism as well as limit the potential for fraud.

“This innovation can be a force for good in improving perceptions about operating standards in the market, and also has the potential to drive an overall rise in performance and satisfaction for everyone concerned.”