“Lower for longer” fuels rise in mortgage lending

New data from the Bank of England reveals the value of all residential mortgage loans reached £1,461 billion in Q2 2019, up from £1,417 in Q2 2018, an increase of 3.1%.

The rise can be in part attributed to the continued price war between UK banks as they continue to compete fiercely for new business. Buyers are benefiting from that through lower rates and an edging up of LTVs.

Banks and purchasers are also a lot more confident that interest rates are going to stay lower for longer. With Brexit approaching, interest rates will have to remain low in order to help the economy. Interest rates are predicted to remain at 0.75% until the end of 2020. Interest rates in the US have also just come down giving a healthy backdrop for low rates in the UK.

The research also reveals that lending to first-time buyers in Q2 this year was 21% of the total advances for house purchases by owner occupiers. This highlights the sustained activity from first-time buyers who are taking advantage of the current market conditions and accelerating their property purchasing plans.

In addition, a good proportion of landlords are continuing to build up their property portfolio as 13.1% of the total mortgage advances that were paid, were for buy-to-let purposes this year.

If you are looking for a buy-to-let investment in London or already have a property you want to let out, please contact Chris Lockley at Jigsaw Mortgages here or speak to a local expert by finding your local office here.

 Stephen Ludlow, Chairman at ludlowthompson, says: “A significant number of home buyers are taking advantage of the existing low interest rates and are taking steps to get on the property ladder.”

“First-time buyers in particular remain active. With interest rates expected to stay low, now is a goodtime to go forward with your property purchasing plans.”

ludlowthompson maintains its transparency by encouraging customer reviews across a number of platforms. Over a three-year period, we ranked number 1 agent in the UK on all agents out of 15,000+ agents, with 5300+ 5* reviews. Here is a selection of recent reviews of happy customers of ludlowthompson via Google Reviews:

Lauren Elizabeth Rowley via Google Reviews:

“We have had the pleasure of working with Emmanuel in our search for our first home, which so far has been a great experience! I was really impressed with the questions Emmanuel asked me, and the interest he took in our situation. I felt that he listened to what we like and don't like without judgement and has been clear and prompt in all his communication with us. Thanks Emmanuel.”

Jake Hitchman via Google Reviews:

“I have had the pleasure of dealing with Elizabeth in the search for a new property in London. She has provided me with incredible service, assisting my search throughout. She is available to answer my queries when needed and provides a great deal of attention to my requirements and specifications. Her communication skills are perfect, and I am yet to have received a better service elsewhere. Would definitely recommend!”