Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“After a slight lull in August, monthly mortgage lending picked back up in September. Lending is now at similar levels to those seen in June and July, which represented a post-recession high. Remortgage lending had a significant role to play in this growth, with both the volume and value of remortgage loans up substantially month-on-month. In contrast, the value of loans for house purchase saw a slight decline while the volume remained static.
“Some mortgage rates climbed in September*, triggering homeowners to lock into competitive rates before they miss out. While the Bank of England recently announced that the low interest rates could be in place for longer than expected, many homeowners still stand to save by moving to a more competitive deal, particularly those who are on their lender’s standard variable rate (SVR).
“Buy-to-let (BTL) lending also saw an upwards turn in September, as well as significant annual growth throughout the year. However, this form of lending is rising from a much lower base than the residential market, as availability of BTL mortgages was worst hit by the recent recession. BTL remortgages are slightly outpacing purchase loans in terms of growth, as landlords also see the benefits of moving to a more competitive deal.”