Gross Mortgage Lending Rises More than Ten Percent Year on Year
Overall data pertaining to the UK housing market of the year 2016 is now trickling out and there are valid figures about the strength of last year. Mortgage lending was not estimated to be in such high demand, but the final numbers paint a different picture. Lending improved more than 10% year on year to hit almost £250bn. This is a significant increase over the year prior which totaled £220bn, according to the Council of Mortgage Lenders.
December is typically a sleeper month for the year, yet posted more than £20bn in gross mortgage lending. This is only a slight decrease compared to the November total of £21.2bn.
Not only was the gross mortgage lending sector strong, the remortgage sector was quite active as well. For the year, UK home owners saved an average of £49 per month off the cost of their monthly mortgage payment through applying for and obtaining a remortgage.
A remortgage is not the traditional mortgage lending tool, but has gained quite a bit of popularity in recent years. It gives a home owner the ability to lower their monthly mortgage payment and access valuable home equity. This home equity can be used for home renovations, paying off old debt, or even taking a holiday which has been planned for years and never taken.
Lenders remain in heavy competition to secure a strong new client base for the next twelve months. And experts remain keen on the idea of remortgaging sooner rather than later keeping interest rates and a possible hike in mind.