Property market will continue growing, according to BBA
The British Bankers’ Association (BBA) has said that it expects the UK property market to continue growing strongly, as mortgage lending continues to increase.
In total, mortgage lending in January was 38% higher than in the same period a year ago, while the amount of mortgages that were approved, but yet to be lent, was up 57% year-on-year. The BBA has cited the governments ‘Help to Buy’ lending scheme as the main catalyst for the increase.
Statistics director at the BBA, David Dooks, said: “Mortgage lending continues to rise compared to a year earlier as mortgage assistance schemes help first-time buyers and housing chains more generally.
“Approvals for new purchases have climbed quite significantly and are now at their highest point since September 2007”, he continued.
While the wider economy continues to improve alongside the property market, it is expected that the Bank of England will start to raise interest rates from next year, and this will impact on the mortgage market.
The concern from the Financial Conduct Authority (FCA), one of the industry regulators, is that some of those who have taken out cheaper mortgage deals made available recently, may be vulnerable when rates rise. Due to this, the regulatory body has asked lenders to identify customers who are most at risk, and to come up with a repayment plan to help them.
Clive Adamson of the FCA said: “We want firms to take extra action to strengthen their arrears management practices and invest in their systems and people to make sure that they get this right.
Need advice?
Our whole of market mortgage advisers can help you whether you’re looking to buy first home, a new property or remortgage your current property
Share this..
Related stories
UK Mortgage Approvals Falling
02/05/2014 UK mortgage approvals fell in March for a second consecutive month according to the Bank of England. The figures show that mortgage approvals have fallen by as much as 11.9% over the past two months and are now the lowest since October 2013. This is despite figures from Nationwide Building Society which suggest house price inflation is at its highest for seven years.
Not...
Read MoreUS government bailout of Fannie Mae and Freddie Mac
News that government has come to the rescue of the ailing US mortgage companies Fannie Mae and Freddie Mac has been well received in the US but prompted concerns that the credit crunch is far from over. It seems that the rate of mortgage defaults and liquidity of the markets was at risk which is why the US authorities decided to act now. So what does it mean in the short, medium and longer term?...
Read MoreFSA to review the UK mortgage market in the autumn
As a result of a Treasury select committee report into the UK mortgage market it looks as though the FSA (Financial Services Authority) is set to perform an in-depth investigation into the sector in autumn 2009. Amid claims that those in mortgage arrears have been charged disproportionately high fees in relation to advice, assistance and ultimately late payment of their mortgage repayments, we cou...
Read MoreSummer dip hits the UK mortgage market
The Council of Mortgage Lenders (CML) has today revealed a 13% decline in UK mortgage funding in August. A total of £12.6 billion was advanced to homebuyers against £14.5 billion a month before, although the figure is a slightly more worrying 37% down on the corresponding period last year. So what is going on?
Despite the fact that mortgage lending is down month by month and when...
Housing repossessions set to hit 75,000 in 2009
The Council of Mortgage Lenders in the UK has today come forward with a forecast that housing repossessions in the UK will hit a massive 75,000 in 2009. This appears to be confirmation of earlier speculation about the level of repossessions in 2009 and appears to blow open the government's claim to be tackling the problem with its recent mortgage relief program. If these figures are correct they w...
Read More