Lending Volumes Back Up
Lending volumes improved again in September, providing good news to prospective purchasers. This is not necessarily a signal that lending terms are on a long-term upward trajectory, but any relaxing of lending pressures can be viewed positively for the current market.
The Council of Mortgage Lenders (CML) reports that lending for new purchases in August was up 12 per cent on July and 11 per cent over the year. For first-time buyers, lending is up 18 per cent over the year despite the end of the stamp duty holiday in March of this year. However, stubbornly high loan to value ratios have persisted.
There are also improvements to lending for investment, with steady growth in buy to let lending this year. The number of mortgage products supporting this market has also remained stable at three times the average level from the bottom of the market in 2009.