CML (Council of Mortgage Lenders) data released yesterday showed overall lending for house purchase in July increased both in volume and value versus June, and was at its highest level since August 2010. There were a total of 48,800 home purchase loans with a value of £7.3billion.
In addition lending to first-time buyers was at its highest level in a year at 18,200 loans with a value of £2.3billion and remortgages too showed a marked improvement, up 11% vs. a year ago. In July there were 31,500 remortgage loans worth £4billion.
First time buyers and home movers showed little change in the level of deposit they put down. For first time buyers this was 20% of the property value and for home movers 31%. First time buyers typically borrowed 3.18 times their income.
During the month the popularity of fixed rate mortgages started to recede with 60% opting for a fixed rate compared to 62% the previous month. This is undoubtedly as a result of increased expectation that there will be no base rate rise in the near future.
In recent weeks there has been increased competition between lenders resulting in improved mortgage scheme rates. This has enabled many borrowers sitting on lenders standard variable rates (SVRs) to switch lender and save money resulting in an improvement in the overall level of remortgage business.
Anyone currently on a lender’s SVR should check to see if they can save money by switching lender. L&C’s one minute mortgage check calculator is quick and easy to use and will tell you if there is a deal available that could save you money.