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UK Housing Mortgage Lending sees Spike in July

UK Housing Mortgage Lending sees Spike in July

A recent spike in mortgage lending could mean the overall housing market is looking up and that housing prices could begin to see support as well.  July lending increased by almost 10% over the previous month, topping out at 12.7 billion pounds, according to the Council of Mortgage Lenders.  Rate cuts from some of the UK’s biggest lenders have led to the latest surge and many are certain a boost from remortgages is not far behind.

Caroline Purdey, CML analyst, practiced caution when she spoke about the latest news of lending increase, saying: “Interpretation of recent trends continues to be challenged by one-off effects. We look forward to the September figures when the distorting effects of the Diamond Jubilee and the Olympics should largely have worked their way through.”

More confidence in housing was expressed by Mark Harris with SPF Private Clients regarding the government program Funding for Lending and its ability to deliver lower rates.  He said: “The Funding for Lending scheme should deliver more competitive mortgage rates in coming weeks and these are already filtering through.

“We’ve seen five-year fixed rates fall to historic lows and expect more jostling for position in this marketplace. This should also lead to an increase in the number of homeowners remortgaging. Now there is a real incentive for many to take the plunge.”

Harris continued: “It might be too early to call the end of the mortgage famine but there are certainly encouraging signs. What is essential is more help for first-time buyers with modest deposits in the form of more competitive and affordable rates.”

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