Mortgage Advice Bureau comments on CML monthly lending trends for July

Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), commented:

“First time buyers have benefited enormously from the concerted efforts of both the government and lenders to improve accessibility of mortgage finance for new buyers. The financial assistance offered through Help to Buy and the resulting wider availability of 95% loan-to-value (LTV) mortgages will have been a significant factor behind the jump in the number of first time buyers beginning their journey on the property ladder.”

“Lending to home movers has also increased, with second steppers beginning to find themselves freed from the shackles of low or negative equity as house prices rise across the country. Existing homeowners looking to move are in a great position to take advantage of a wider variety of mortgage products on offer at historically low rates, provided they meet affordability criteria.”

“Although conditions have improved markedly over the past year, now is not the time to pull the rug from under buyers’ feet by placing further restrictions on mortgage lending. Affordability pressures are creating anxiety for some borrowers and the prospect of an interest rate rise still remains. But while lenders need to see more information about people’s financial commitments, they continue to show a healthy appetite for business. These figures show consumers have plenty of reason to remain hopeful of securing a mortgage as the new Mortgage Market Review rules bed in.”