Lenders have been offering more attractive offers and home movers have taken advantage of the opportunity.  According to the July data on mortgage lending from the Council of Mortgage Lenders (CML) there was a 2% increase when comparing July 2012 to July 2011 and there was an increase in homeowners moving home with better offers available to them to do so in mortgage lending.  Homebuyers and remortgage seekers received  £12.7 billion in mortgage loans in July which was a 7% increase over the June level of £11.9 billion and a 2% increase over the total reported in July last year.  

The total overall mortgage loans for home purchases amounted to 49,500 while home movers increased by 8% in a month to month comparison and 4% in a year to year comparison at 30,500.  There were 19,000 mortgage loans approved to first time buyers which was 1% less than June but 8% above the July 2011 level.  Remortgaging remained subdued with homeowners accounting for 23.5% less in mortgage approvals when compared to July 2011.  There were 24,100 remortgages in July.

The mortgage lending market has become more competitive in recent months and July marked the start of historical level mortgage loans being offered.  Some of the offerings fell below the 3% interest rate level.  The more attractive offers were better received by borrowers according to experts and helped to boost the mortgage lending market but those loans will not be reflected until after the July data since those loans would not have completed.  August data is expected to start reflecting the increase in demand from borrowers that was triggered by the better offerings that appeared on the mortgage lending market in July.