Mortgage lending hits highest level since the Recession
- 24th March 2016
- Buying Property News
Increase in lending to first-time buyers as wages rise and unemployment falls to pre-recession low
Recent data from the Council of Mortgage Lenders has shown that February saw its highest levels of mortgage lending by banks and building societies since the Recession, with mortgage lending reaching £17.6 billion, up 30% from £13.6 billion last year.
With no imminent change to interest rates, homebuyers’ confidence has risen over the last few months. The fall in unemployment and wage increases have also helped to provide a boost to the market, with increased numbers not in the financial position to buy property and feeling confident enough to take that step forward.
Indeed, the Council of Mortgage Lenders data showed that the number of loans to first time buyers had increased by over 9% to 11,429 in February, from 10,479 the previous year.
January saw even higher amounts of lending activity, with gross mortgage lending reaching £18.5 billion, 5% more than in February.
The surge in the amount of lending taking place from the end of 2015 to February is also supported by competitive mortgage deals. The latest figures form the Mortgage Advice Bureau reveal the number of mortgage products soared to 17,132 in January 2016, an eight-year high.
Stephen Ludlow, Chairman at ludlowthompson comments: “Homebuyers are making the most of improved economic conditions and higher wages, and this has meant an increase in the number of people willing to take out a mortagage."
“At our offices we have noticed a considerable surge in demand over the last few months from the 30-45 age bracket looking to buy their own home."
“However, we will have to wait and see how the lending levels will settle after April once the new stamp duty changes for buy-to-let properties have been introduced and what this will mean for the wider market.”
Homebuyers are making the most improved economic conditions and higher wages, and this has seen increased activity within mortgage lending
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