Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“Following a brief slowdown at the end of the summer, mortgage lending has now bounced back to its highest post-recession level. With an 8 per cent jump in lending between September and October, it is likely that 2015’s total will now exceed its original forecast, indicating 2015 has been a strong year for lenders and borrowers alike.
“This growth in lending has been driven by favourable market conditions. While house prices have continued to rise, they are increasing at a far slower pace compared to 2014. The low base rate means mortgage rates are at affordable levels, and consumers have also been supported by wage growth and low inflation. Borrowers are now able to take advantage of a growing number of highly competitive mortgage products, with the total number increasing 10 per cent between August and September alone.
“Would-be homebuyers have the benefit of increased lender appetite and rock bottom mortgage rates. Although the goalposts have been moved many times as to when a rise in the base rate may or may not occur, one thing is certain – these types of rates won’t be around forever. Existing mortgage borrowers can also benefit by swapping to a new product, with some lender’s standard variable rates offering poor value.”