Mortgage funding to increase in BTl's
06/01/2010 - More lenders will be willing to lend
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The UK housing market was given a fresh boost as the overall lending figures for mortgages increased by 4.85 per cent in November 2009. The latest rise in borrowing meant that more than 65,500 successful mortgage applications went through which compared favourably against the October figure of around 58,000.
The 200 per cent rise in mortgage approvals against the November 2008 figure meant that the value of lending rose by £1.5billion over the previous months with the previous average across 6 months of £0.7billion.
These latest figures have made it very difficult for industry commentators to correctly predict whether the housing market is heading upwards or is further falling and heading for the skids. Predictions have meant that some estate agents and economists have been poles apart with some predicting price rises in the housing market of up to 10% and others predicting further cuts in mortgage funding and a lack of buyers forcing sale prices down by 10% on the previous 6 months. A spokesman for the Royal Institution of Chartered Surveyors (RICS) said “The figures support our view that increasing momentum in the housing market will see further rises in house prices during early 2010. Mortgage approvals have now been rising consistently for a year and the latest credit conditions survey from the Bank of England continues to suggest a gradual improvement in the lending environment over the coming months”.
Lenders have announced that they will be increasing lending facilities to borrowers in the market. There are also signs that mortgages will be available in both the buy to let and residential markets from lenders who have previously held back during the credit crunch.
