Mortgage Lending Hits 7 Year High
Mortgage lending has reached a seven year high in June as the uncertainty of the general election was removed and confidence returned to the housing market.
According to financial experts it looks as though we are experiencing a bounce after the general election and this is unlikely to continue.
Over £20bn of loans taken out in June
According to the Council of Mortgage Lenders in excess of £20bn of new loans were issued in June compared to a figure of just under £16bn in May. The June figures are also an increase of 15% on June 2014.
It looks as though many buyers were holding back to sew the results of the general election before purchasing a property because of the threat to the housing market if the Labour Party had won.
£210 bn to be lent in 2015 according to experts
The total amount of money to be lent this year has been forecast at circa £210bn and is more or less in line with expectations. There are however a lot of buyers that have been held back because the the tougher lending criteria imposed on buyers by the banks and building societies. There are still a lot of buyers who are unable to get a mortgage and are being forced to stay in rented accommodation.
Competition is fierce in the mortgage market
There is an expectation that loans could become even cheaper because there is a lot of fierce competition between mortgage lenders. The rates currently on offer are amongst the lowest of all time and this looks as though it could continue in the short term.