We are Picking Up Good Vibrations!
The Council of Mortgage Lenders reported lending in September to be £16.2 billion. That’s 41% higher than September last year (£11.5 billion). The lending in the 3rd quarter of 2013 was also the highest since 2008.
CML Chief Economist Bob Pannell comments:
“Indicators suggest we are witnessing the strongest house purchase performance in five years. House prices too have revived but modestly, aside from a resurgent London market.
“With the Help to Buy mortgage guarantee scheme becoming fully operational in January and firms implementing the mortgage market review in April 2014, it may be several months into 2014 before we get a true gauge of the scale and reach of Help to Buy. For now, the scheme has launched against an already recovering UK housing market with several quarters of improving credit availability, growing competition, and strengthening demand.”
The UK housing market is well and truly on the road to recovery. Huge levels of government assistance via Funding for Lending and Help to Buy have made mortgages more affordable and have made purchasing a new home more achievable for first time buyers and homeowners. We’ll soon all be Surfing USA!
Santander have just announced that they have grown their mortgage lending book by 15% since last year. They have been market leading for most of this year and have their sights set on a massive year in 2014 so watch out for lots of really competitive products from them.
Virgin Money have transformed the old Northern Rock business into a great package. They provide excellent service and are now looking to increase their market share, so we should see them do very well in this new positive market.
On the buy to let side, the big players Birmingham Midshires and TMW (part of Nationwide) are still very strong however we are seeing the smaller lenders producing some innovative and highly competitive products to their ranges. Mortgage Trust in particular have some great low rates with low fees.
All Summer Long we have seen increased levels of interest and activity in the market. Wouldn’t It Be Nice for this to continue throughout the next year – which we think it will. What Fun…Fun…Fun!