According to the Council for Mortgage Lenders (CML), the number of mortgages purchased at the end of last year increased as customers took advantage of favourable rates.
November was highlighted as a key month for mortgage lending as the number of homeowners taking a fixed-rate deal reached the highest level for two years.
These fixed-rate mortgages were said to account for 65% of those taken by all borrowers, an increase of 3% from the previous month.
The overall number of mortgage loans also increased, with 47,000 being taken during the month. This was a 3% increase in terms of quantity with the value of the loans increasing by 5% - to £6.9billion.
Favourable rates were attributed as the central cause of the change, with the Bank of England’s 0.5% rate providing the perfect opportunity for borrowers.
This historic low has been maintained for some time and has seen mortgage providers slash their rates to compete in the current market, attracting the interest of customers.
Despite the news, the predicted future of the housing market remains uncertain as house prices are expected to fall by 5% over the coming months.
First time buyers (FTBs) were also said to have taken advantage of the opportunity, taking out more than 17,000 loans during November, the collective value of which was more than £2 billion.
This figure represented a 4% increase in the volume of loans which were taken, with the £2 billion figure being the product of a 5% increase in value.
Commenting on the situation, Paul Smee, the Director General of the CML, stated that a “further increase in first time buyer activity” could be expected over the coming months.
He explained that this would be due to customers’ eagerness to get their purchases finalised before the favourable stamp duty concession ends in March.
Yet, with the property market continuing to be largely unstable, many people may be worried about whether they can afford mortgages or loans in the coming years.
Investing in the right insurance products is, therefore, vital and all borrowers should make sure they have an up-to-date life insurance policy to prevent their loved ones being burdened with large mortgage repayments or additional hefty bills in the unfortunate event of their death.Back to top