Introducer Today: Mortgage market celebrates early Christmas as lending hits new high
Fri 20 Nov 2015
Christmas has come early for the mortgage industry which is celebrating the highest monthly lending figure formore than seven years.
Gross mortgage lending in October hit 21.8 billion, up 8% from September's total of 20.1 billion, according tolatest gross mortgage lending figures from the Council of Mortgage Lenders.
This is the highest monthly figure since gross lending reached 23.6 billion in July 2008.
Jonathan Harris, director of mortgage broker Anderson Harris, said mortgage brokers are busy as borrowersincreasingly turn to an intermediary to help navigate the post-Mortgage Market Review world.
Those who can jump through all the necessary hoops will be rewarded with some very competitive rates indeed,a trend that shows no signs of abating as lenders vie for business and interest rates look set to remain low."
Harris said the biggest challenge for borrowers is meeting lenders affordability criteria, as property pricescontinue to rise in many areas while wages fail to keep pace.
First-time buyers will find it difficult unless they have assistance from the Bank of Mum and Dad. This shouldkeep a lid on the market and ensure we dont return to runaway growth."
Jeremy Duncombe, director, Legal & General Mortgage Club, welcomed the fact that intermediaries now accountfor 70% of overall lending.
This is good news for consumers as it means that more people are benefitting from full advice.
Peter Rollings, chief executive of London estate agency Marsh & Parsons, said Christmas appears to have comeearly for borrowers this year.
"Were yet to clear the pre-crisis July 2008 benchmark but month-on-month improvements are getting morecheerful as we approach the festive season.