Mortgage lending was up in last quarter

November 1, 2021

Enable’s IFAs can help you find the right mortgage lending for you. Over the summer mortgage lending went up significantly. According to recent Money and Credit statistics from the Bank of England. “Gross mortgage lending “increased sharply” to £30.7 billion in September, from £20.9 billion in August, driven by borrowing ahead of the complete tapering off of lower stamp duty from October”.

It is interesting to note that “individuals borrowed £9.5 billion of mortgage debt in September, down from £4.4 billion in August but the highest since June 2021 when net borrowing reached a record of £17.1 billion. Net borrowing in September was £2.9 billion above the 12-month average to June 2021, when the full stamp duty holiday was in effect.

Gross repayments also increased to £20.7 billion from £17.7 billion in August.”

For the Bank of England approvals for house purchases are an indicator of future borrowing,

Gareth Lewis, commercial director at MT Finance, said: “These figures are relatively positive in the main, apart from the drop in mortgage approvals. Naturally, there was going to be more activity ahead of the end of the stamp duty holiday but with mortgage approvals falling, it will be interesting to see how the market fares over the coming months. Much will depend on how many properties come to market, which will have an impact on the number of transactions.”

It’s also interesting to note that Later Life lending is also doing well. It would seem that the stamp duty holiday has been instrumental in raising awareness of the option to use equity release to fund a house purchase. If you are interested to look at this form of mortgage borrowing Enable’s IFAs can help you look at your options and find what kind of mortgage is right for you. Having the support of a broker who can guide you through a product that suits your specific needs can be invaluable.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

https://www.financialreporter.co.uk/mortgages/mortgage-lending-increased-sharply-to-307bn-in-september-boe.html

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