Gross mortgage lending increased during the month of December. Activity remained high across many sectors out of low interest rates and heavy lender competition. The last month of the fourth quarter posted more than £20billion in gross mortgage lending which is a year on year increase of 1.2%. Housing experts were caught off guard by the increase in lending due to past quiet months which typically characterize the last month of the year in housing.

Gross mortgage lending figures for the month of January this year are expected to be favourable, according to many close to the market. Remortgage activity continues its strong run of month after month of high numbers of house owners remortgaging in an attempt to lower outgoings.

An interest rate increase which took place in November prompted many to act and obtain a new mortgage deal. Although the increase in interest rates occurred as the standard base rate was hiked from 0.25% to 0.5%, remortgagors have not backed off. Lender competition offering attractive deals has made it possible for many house owners to save money whilst accessing valuable home equity.

Henry Woodcock with IRESS commented on the latest data regarding the housing market, saying: “The stamp duty cut for first time buyers has brought new buyers into the market, and as far as buy to let mortgages go, we’ve already seen significantly more demand than at this point last year. There’s also a raft of two year fixed deals about to reach maturity following the refinancing rush ahead of stamp duty changes in 2016, so there could still be more growth on the horizon.”