Homeowners cash in as mortgage rates slashed again
Britain’s home loans business was last night described as “exploding” by experts after the rise in the number of mortgage offers available.
Lending and approvals are up now that it is easier to borrow thanks to the price war among banks who have been forced to cut rates again.
Both the Bank of England and the Building Societies Association released positive figures yesterday showing the UK’s mortgages sector working overtime.
Richard Sexton of online chartered surveyors e.surv said: “Banks are lowering rates and increasing the range of mortgages on offer.
“House prices remain high, with each month bringing fresh rises, but banks are now more willing to lend to buyers with smaller pockets.
“They’ve had time to build capital buffers and restructure in answer to the demands of new banking legislation. Now they’ve emerged from the gloom, and are increasing mortgage lending once more. Returning confidence in the economy is affecting the amount of lending positively.”
He added: “The mortgage market is exploding.”
Home loan lending by building societies and other mutuals was £3.5billion in June and £18billion in the first half of the year, up by 28 per cent compared to £14billion in the first half of 2012.
And a total of 165,800 mortgages were approved in the first half of the year, up 17 per cent compared to the 141,200 in the same period for 2012.