SALES NEWS: Mortgage market improves as lenders cut rates to woo more buyers
The amount of money lent as mortgages last year across the whole of the UK hit £246 billion – that’s 12 per cent higher than in 2015, and the largest total for the past 10 years.
In another sign that the housing market remains strong despite economic and political uncertainties, a spokesman for the Council of Mortgage Lenders says: “Approvals for house purchase have recovered strongly. The current availability of mortgage credit is benign, and the real issue continues to be a dearth of properties on the market.”
This shortage of stock is likely to cause a modest increase in prices throughout 2017 unless more homes are built or existing owners decide to sell to take advantage of the improving market, he adds.
Since mid-January three major mortgage lenders – HSBC, Barclays and Aldermore – have launched new products, all with cheaper rates and aimed at mainstream borrowers.