Mortgage
Lending Gaining Strength in England
Mortgage lending rates are at highest levels since before
the 2008 financial crisis. Mortgage lending rose to 21.8 billion pounds in
October, up nearly 20% from the year prior. Growth in mortgage lending is
currently at its seven-year high according to the Council of Mortgage Lenders.
It is expected that mortgage lending will beat forecasts and continue to
increases. According to the Bank of England mortgage approval ratings showed
mixed signals about the future of the housing market. House purchase approvals
fell well below 70,000 in September while in the same month remortgages rose to
41,000. The CML believes that the weak level of housing transactions in recent
months is troubling because the level of properties being offered for sale are
extremely low.
The UK economist from HIS Global Insight, Howard Archer, stated
that mortgage lending was mainly utilized by people attempting to remortgage by
locking in a low interest rate before they are expected to rise in 2017. He
believes that house prices will see a steady increase because of lack of buyers
and a shortage of properties to sell.
2 comments:
It is interesting to see these variations in mortgage lending in the housing economy of England. However; it does make sense that the lack of buyers will lead to housing prices to increase and in turn a shortage in properties to sell will impact prices.
This is a very interesting article and the drop in house purchase approvals is crazy. I do agree with Muhammad about the rise in housing prices because the quantity of properties is at such a low level.
Post a Comment