UK Mortgage Lending Market begins Autumn Selling Season Facing Challenges
Mortgage lending has been quite sensitive over the past few years with the last twelve months no exception. Lenders are making sure the risk they take on any borrower is worth it and the loss that may follow is minimal. Through the especially bad times up to this point, the biggest banks are treading slowly and carefully with every move they make. House lending compared to last year during the month of August is off by more than 12%. The future of the housing market as it stands is quite unsure, to say the least.
Remortgages are also struggling compared to the same time last year. More than 30% fewer loans were approved this August when compared to last year during the same month.
According to the British Bankers’ Association, gross mortgage lending remains challenged, especially during the last few months. August tallied shy of 7 billion pounds which is even lower than the months preceding it. Although distractions may have stood in the way of home hunting for many, the Olympic Games and the Queen’s Jubilee provided more than enough brilliant memories to take the focus off what was not happening in housing.
The autumn selling season is quickly approaching with many different opinions of how sales of homes will pan out from numerous economists. The strength of the government-backed NewBuy scheme will be sternly put to the test as well as the ability of the remortgage market to remain active.