The most recent Bank of England lending report painted a more positive picture for the mortgage lending market going forward.  While the last six month average of property loans sits at slightly below 49,000, October logged almost 53,000.  Remortgage loans also spiked modestly, improving on the six month average of 27,600 and increasing to just north of 29,000.  This is the third consecutive month of growth for both original loans and remortgages.  The winter months typically experience major cooling periods for housing type loans, but so far not this year.  Advances in mortgage loans are causing some economists to predict the beginning of 2013 will be strong as opposed to lackluster.

Howard Archer, Chief UK & European Economist at IHS Global Insight said: “The renewed net repayment of unsecured consumer credit in October reinforces belief that consumer appetite for taking on new borrowing is still limited while there is also an ongoing strong desire of many consumers to reduce their debt in the face of a still worrying and uncertain outlook.”

Consumer confidence remains low among the majority of those looking to borrow.  As long as this factor remains prominent, and disposable income remains tight, housing will continue to struggle.

Remortgages remain a diamond in the rough for many homeowners who have not spent any time researching the advantages of such products.  Remortgages have the potential to open up brand new financial doors if a homeowner can be approved for one.  With a modest amount of home equity and sound credit, a homeowner could lower the monthly mortgage payment.