Mortgage lending rises 25% in a year

Mortgage approvals rose over 24% UK-Houses-Home-Mortgage-lendingin the year to September motivated by recovery in remortgaging. Remortgages leapt 40% over the year, against a 14% rise in house purchase approvals. Latest report shows that gross mortgage borrowing was £12.1 bn in September which is 17% higher than last year. Borrowers now are rushing to fix the cheap mortgage deals to defend against a rise in interest rates.

Expert says: “Housing market has much more energy than the last year, which is due to the growth in small deposit lending. Low interest rates are encouraging so, fixed rates are likely to remain competitive. As we move towards the end of the year it is possible that we could see some exceptional deals as banks look to meet their targets for the year. Borrowers are now choosing to go for a longer term fixed rate to make sure they are benefitted from the rate drop in future.”

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