Mortgage lending on the rise


The Council of Mortgage Lenders has estimated that gross mortgage lending was up by 21% in May – an unexpected leap that could, perhaps, indicate an improving UK economy. This is the highest monthly lending estimate since October 2008.

The increase may have something to do with the growing availability of low-cost fixed-rate mortgages coming to the market. The average cost of a five-year fixed-rate mortgage is currently below 4% for the first time in years. Average two- and three-year rates also hit record lows in May 2013 at 3.82% and 4.13% respectively.

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