£20bn mortgage lending in August

September 18, 2015

According to the Council of Mortgage Lenders (CML) they reported £20bn of mortgage deals went through in August, this was slightly down on July’s lending total of £21.7 billion, but 12 per cent higher than August last year, when loans totalling £17.8 billion went through.

A mortgage price war  between lenders, with many slashing the rates on their deals to the lowest they have ever offered, has attracted people to snap up cheap re-mortgage deals over the summer, that as well as people buying homes has contributed to the strong figure.

Talk of higher interest rates from next year by the Bank of England  has also been a factor in prompting some mortgage holders to lock into a cheap deal before it disappears.

Bob Pannell, CML chief economist, reportedly said: “Mortgage lending is currently enjoying its best spell since 2008, on the back of a pick-up in house purchase and remortgage activity over the summer months. August’s lending of £20 billion marks the third month in a row of strong year-on-year growth and is the highest August figure since 2007.

“We expect further modest growth for the rest of the year, although affordability pressures are likely to limit gains for first-time buyers and home movers.”

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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