The thirst to lend has been quenched
Peter Williams is executive director of the Intermediary Mortgage Lenders Association
The latest figures from the Bank of England reflect a strengthening market with mortgage lending increasing by £1bn in September and the number of mortgage approvals rising by 14.1%.
It is interesting to note that remortgage loans have outpaced the growth in other sectors over the past month, with the number of approvals for remortgaging climbing from 35,178 to 33,023 in September.
This shows that it is not just first-time buyers who are taking advantage of the current competitive rates.
This continuing upward trend bodes well for the future, but lenders and brokers alike believe there is plenty still to come.
The thirst to lend has been quenched with the return of consumer confidence.
The Funding for Lending Scheme has played a significant part in this by improving the availability of mortgage credit and keeping mortgage rates consistently low.
Help to Buy should help to sustain this momentum but it is important to recognise that we are unlikely to see a return to what might be deemed a ‘normal market’ for another two to three years due to the extent of the downturn.
The government and industry both need to keep this in mind and work together as we move towards the formation of a sustainable market.