Freelancers looking for a contractor mortgage might be interested to learn that mortgage lending increased to its highest level in over two years last month.
Total mortgage lending in August was £13.4 billion, a 6% increase on the previous month and 10% up on the same time last year, figures from the CML show. It was the highest monthly total since July 2009 and the best August figure for three years.
Bob Pannell, the chief economist at the CML, said we have seen fluctuating lending figures in recent months and the underlying picture remains subdued but stable. Lending in August offset a weak performance in July and if you take the two months together, there is little difference on the comparable months of 2009 and 2010.
He went on to say that if current lending trends continue, the increase will be largely driven by borrowers remortgaging to take advantage of historically low interest rates. Buy to let investors can also get high yields at the expense of first time buyers who are squeezed out of the market by high deposit requirements.
Some commentators hope that the stronger lending figures could entice people back to the housing market after the traditional summer lull. Nicholas Leeming, from the property website Zoopla, said it was encouraging to see positive lending signals as we desperately need to address the supply and demand imbalance.
Sellers could be encouraged to put their home up for sale in the autumn and additional supply should tempt more buyers to obtain a low interest mortgage.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
