Financial Times: High Street Mortgage Figures Buoy Industry Confidence
Thu 23 Oct 2014
The British Banking Associations high street lending statistics for September revealed gross mortgage borrowing of 10.6bn, up 7 per cent on the same period last year, prompting commentators to predict a strong final few months of activity in 2014.
Figures for last month also showed that overall mortgage stock continued to rise despite some moderation in demand and is 1.5 per cent higher than a year earlier.
The BBA also found that while approval processes were temporarily disrupted by the implementation of the Mortgage Market Review earlier this year, recent figures indicate that overall approval numbers have slowed over the year to September, with approvals for house purchase in September 10 per cent lower than a year ago.
Peter Rollings, chief executive of Marsh and Parsons, commented there was some hesitation earlier in the year from new buyers following the MMR, as stricter affordability checks on borrowing and lending slowed the process.
Now these new regulations have bedded in, this has coincided with a broader stabilisation in the property market as house price growth tails off and the pace of transactions eases.
But as trading conditions return to native territory after exceptional circumstances earlier this year, consumer confidence is on the up and all the building blocks are in place for a strong final few months of activity in 2014.
Mr Rollings stated that with an interest rate rise being kept at bay and many attractive mortgage products available, now is an excellent time to get onto the ladder.
The supply of property currently on the market would have been unimaginable a few months ago, and there are now only 12 buyers competing for every available home for sale compared to 24 in January.