£20bn mortgage lending in August
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.
“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.”