It’s the end of the summer and with that mortgage approval numbers in the UK are hitting an 18 month high. According to the latest data from chartered surveyors, mortgage lending is currently surging as many house hunters are finding deals ahead of the interest rate increase estimated to take place in the coming months. Last year at this time, August mortgage approvals totaled almost 10% less than what are occurring at the present time, according to data from the Mortgage Monitor.

To sum it up in a few short words, the UK mortgage lending sector is hot and will continue to stay that way according to many close to the housing market.

Richard Sexton of e surv chartered surveyors commented on the latest data from the housing market, saying: “Weak inflation and recovering wages mean that more British workers are able to meet the stringent affordability requirements demanded by the new MMR rules and obtain the mortgage they want.

“This latest resurgence of demand is pushing up prices. What’s more, banks are supporting those borrowers that need finance, and many record low rates remain. It‘s a good time for many potential new buyers to get a mortgage and think about taking a first step on the ladder.”

Sexton added: “Concerns over an interest rate rise may have helped push some borrowers into acting quickly. However, this is now the third consecutive month of growth and home lending has been strong since May, now that the uncertainty that surrounded the election has evaporated. Healthier mortgage lending reflects a stronger UK economy and an upturn in fortunes for British buyers.”

Remortgage activity is also surging as the year draws to an end. Many house owners are rushing to obtain an attractive remortgage deal not only before the base rate increases, but also before lenders have to move rates upward to match the coming increase from the Bank of England.