According to CML (Council of Mortgage Lenders) figures released today, gross mortgage lending was an estimated £13.4 billion in August, a 10% increase from £12.1 billion in August 2010. This was also a 6% increase from £12.6 billion in July.
This is the highest level of lending since July 2009 when total lending was £14 billion and the highest monthly total for August since 2008 when the total was £19.3 billion.
In his market commentary CML chief economist Bob Pannell said that overall levels of lending appear broadly stable, albeit in a subdued market.
At L&C we are still seeing significant remortgage activity, as borrowers paying lender SVRs, often at a rate in excess of 4%, are remortgaging to attractive fixed and tracker rates at around 3% or less. In doing so they are able to save a significant sum each month which is particularly important at the moment given the increased cost of food, fuel and utilities.
Any borrower currently paying their lender’s SVR should take a moment to review their current mortgage to see if they can save money. L&C’s one minute mortgage check calculator is a quick and easy way to see if savings may be possible.
Despite continued economic uncertainty in Europe, it is encouraging that in the UK there is still a good level of competition between lenders providing consumers with the opportunity to switch mortgage lender and save money.