Mortgage lending set to rise further
The mortgage market has continued to improve as conditions and competition drives up demand from borrowers according to finance experts. Mortgage approvals were also up and a pipeline of new business continues to improve.
The number of new loans agreed was 10 higher in April than a year ago and is the highest figure since 2009. Figures are also on the increase for borrowers looking to remortgage and switch to cheaper lenders as competition improves amongst lenders.
Unemployment has also continued to fall which has helped the mortgage market as more proxpective buyers look to buy a home. Rents are so high now across the UK that it is cheaper to buy a home than pay rent each month.
Rents are continuing to rise but mortgage rates are still low and the Bank of England has said that rates will only go up very slowly when the do eventually start to rise. This may start to happen in 2016 if the economy continues on its current trajectory.
The gap between what people earn and what they can afford to buy is still an issue. Mortgages have become harder to obtain as lending criteria has been tightened up making it harder to buy a home for some people.
Unless you have a large deposit it is still hard to get a loan at a low interest rate.The best loans out there are for borrowers that have big deposits. If you are lucky enough to have wealthy parents or inherit a lump sum you will be able to get the best mortgage deal.