The tone of the UK housing market is once again defined as one which cannot be predicted according to the latest figures made public by the British Bankers Association.  Mortgage lending increased year on year this August by more than 14% and totaled more than £11bn.  The increase is due to the Help to Buy scheme initiated by the government as well as the surge in consumer confidence which has taken place in the last two years.  The market is moving back toward normal levels as time passes, which was expected.  The economy overall is booming with the UK leading most other countries on growth.

Whilst mortgage lending is increasing, the remortgage market has cooled off significantly.  Year on year figures indicate a decrease in remortgaging by almost 20%.

Brian Murphy, head of lending at Mortgage Advice Bureau, commented on the current housing market tone, saying: “Despite August traditionally being a quieter period for the mortgage market, increased confidence among lenders and consumers shone through, resulting in a 15% annual boost in mortgage lending.

“Healthy competition between lenders means that consumers can take advantage of preferential rates, while MAB data shows that more than 12,000 products were available on the market in August: a post-credit crunch record high for consumer choice.”

Murphy added: “While the remortgage market has not yet seen the same level of recovery as purchase loans – with overall remortgaging levels down on last year – we can expect to see activity increase as interest rate rises edge closer, making locking into a low rate deal at the top of consumers’ priorities.”