Q2 Sees Rise In Residential Mortgage Lending
Data published by the Bank of England/ Financial Conduct Authority shows that there was an increase in the amount of residential mortgage lending when comparing the second quarter of 2018 with the same quarter of 2017.
In Q2 of 2018 the total amount of regulated and non regulated residential loans outstanding was £1,417.2 billion whereas in the same quarter of last year the figure was £1,366.0 billion. That is a significant rise.
Gross advances in Q2 of 2018 amounted to £66.7 billion whereas in Q2 of 2017 the figure was £62.7 billion – again a significant difference. Gross advances for house purchase including BRL remortgages made up around 63%, other residential loans to individuals made up about 35% and further advances accounted for in the region of 2%.
Gross advances in Q2 of 2018 were made up of around 22% to first time buyers, house movers made up about 29%, remortgages made up about 31% and buy to let accounted for about 14%.
As autumn is upon us it will be interesting to see how the residential mortgage market moves in the next few weeks as we head towards the winter period when we tend to see a drop in the number of new completions as people tend to focus upon the Christmas festivities. It is also going to be interesting to monitor house prices in the coming months especially with the deadline for Brexit fast approaching.
As you will no doubt be aware, there are still many lenders providing residential mortgages here in the UK. Therefore, it may pay you to shop around to try to source the most competitive lending package. There are no doubt still some attractive deals to be obtained. Traditionally, people have tended to approach the high street banks and building societies for their residential mortgage but there are a number of other specialist lenders providing such finance. The more lenders that there are then one would expect that to be of potential benefit to the customer seeking such finance here in the UK.