Mortgage activity robust as buyers and owners look to stay ahead of any interest rate rises
- 1st May 2018
- Property Tips
Mortgage lending 10% higher than a year ago reflecting sustained momentum in housing market
Food for thought for new homebuyers and owners thinking of re-mortgaging: new figures from the Bank of England show that mortgage lending activity is 10% higher than a year ago. That’s despite a slight dip in the final 3 months of 2017 compared to the previous quarter.
Why is this increase significant? For one thing, it is a strong indicator of confidence in the market in terms of buyer demand and banks’ willingness to lend.
It is also a sign that, with interest rates on the rise, savvy buyers and existing homeowners are seeking to lock in good mortgage deals while rates remain ultra-low.
That’s clearly a sensible approach, and with many commentators expecting another rate rise very soon, it’s our top property tip for this month – particularly for those whose fixed rate deals are coming to an end.
Stephen Ludlow, Chairman at ludlowthompson, says: “The increase in mortgage activity is a reflection that there’s plenty of momentum in the housing market – and it’s also tied in closely with interest rate movements.”
“Many homebuyers and owners are keeping a close eye on when rate rises might happen with a view to making any major purchasing or re-mortgaging decisions before they increase any further."
The data also shows the resilience of the buy-to-let sector, despite the introduction of the 3% Stamp Duty levy, new stress tests, and the tapering of mortgage interest relief. 12.7% of all mortgages in Q4 2017 went to buy-to-let investors, a slight dip from 14.4% in Q4 2016 and 16.3% in 2015.
Stephen Ludlow continues: "The level of buy-to-let mortgage lending shows the sector's continued resilience considering that the 2015 level includes investors rushing to beat the new Stamp Duty. Additionally, the difference is likely to be much smaller as the figures do not include re-mortgages."
“For those on soon-to-end fixed-rate deals, it may well pay to take action sooner rather than later.”
If you are a considering buying a buy-to-let property, please contact Chris Lockley at Jigsaw Mortgages here.
The increase in mortgage activity is a reflection that there’s plenty of momentum in the housing market – and it’s also tied in closely with interest rate movements
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS