The Council of Mortgage Lenders estimates that gross mortgage lending reached £19 billion in October, a 5.5 per cent increase on September. However, the annual growth rate of 8 per cent is rather lower than the 40 per cent year-on-year jump seen in January. It makes for a more sustainable and healthy market, free from boom and bust.
With the Bank of England suggesting that the first interest rate rise won’t be until the end of next year, at the earliest, this will boost activity in the mortgage market. Many lenders are cutting their rates in an effort to generate more business, particularly as the introduction of the mortgage market review slowed things down earlier this year. There are some great mortgage offers around for those buying or remortgaging, and this will continue well into next year.
All we need now is for lenders to come up with innovative products that will solve some of the issues created by MMR. In particular, something directed at older borrowers who are struggling to get a mortgage, remortgage or even guarantee a child’s mortgage because of their age.