Mortgage lending last year was at its highest point since 2008.
According to the Council of Mortgage Lenders (CML), UK homeowners borrowed over £220 billion last year, and increase of 8% from 2014. The increase may be due to a number of factors such as growing wages and a decrease in unemployment. This peak in mortgage lending may not continue into 2016 however, as the supply level of new and existing properties is low.
Low Interest Rates
Cheap mortgage deals may also explain the increase in lending, and this does look set to continue this year. The Bank of England has held off yet again on a rise in interest rates, with mortgage lenders reducing their rates in accordance. Interest rates have been at 0.5% since 2009, and this is not expected to change until at least 2017.
If you would like advice on buying a new house or re-mortgaging, we understand the complexities involved. Please get in touch and we can help take the weight off your shoulders.