Mortgage Balances Outstanding Continue To Rise
Many people here in the UK want to own their own property but some find it too expensive or have difficulty in obtaining a mortgage so resort to renting. However, statistics produced by the Building Societies Association (BSA) reveal that the amount of balances outstanding on mortgages has continued to rise.
This is evidenced by the following data: –
December 2014 £1,255,940 million
December 2015 £1,288,366 million
December 2016 £1,324,085 million
December 2017 £1,369,919 million
December 2018 £1,409,770 million
May 2019 £1,420,864 million
Looking more closely at the figure for May 2019 this is broken down as follows: –
Building Societies and Banks £1,260,002 million
Other Specialist Lenders £109,000 million
Others £51.862 million
This shows that building societies and banks had a market share of 88.7%. Back in December 2014 they had a market share of 85.7%. Traditionally, leading up to the mid 1970s, if you required a residential mortgage you would normally contact a building society and make an appointment to see the manager but since then banks became more active in the marketplace and made the public more aware that they were willing to consider applications for residential mortgages.
Total gross lending on a year to date basis to May 2019 stood at £104,249 million and total net lending for the same period was £14,822 million.
For most people, taking on a residential mortgage to buy a property is usually the biggest financial commitment they will ever enter into. Nowadays, as with most types of lending, there are numerous providers of residential mortgages and various ways that you can apply. For instance, you can contact a bank or building society direct and apply or you could use the services of a mortgage broker who will often charge a fee who specialises in that form of lending who should have a panel of lenders that he or she can help you source a competitive residential mortgage from.