The New Year has brought with it a number of fresh reports with regards to the mortgage market here in the UK. In particular, there are a number of emerging reports pointing towards a slowing down of the property market towards the end of 2014.
According to a recent article from The Guardian, the number of mortgage loans to home buyers fell by 12.4% in November 2014. This new data has come from the Council of Mortgage lenders (CML) who revealed its members had advanced only 55,600 house purchase loans, worth a total of £9.2 billion, in November. This figure is 6.65% lower than data recorded for November 2013.
As reported by the BBC, the number of home loans advanced to first time buyers was also down by 11.35% in October of last year.
Surprisingly, there was one sector of the market that bucked this trend. Indeed there was in fact a 9% increase in buy-to-let lending compared to November 2013, and demand for buy-to-let mortgages has gone from strength to strength in recent months.
These new figures point to a continued slowing of the property market here in the UK. Despite this, the CML were quick to reassure that this easing of activity in the mortgage market was not entirely unexpected, and the winter months typically witness a seasonal dip in lending .
There was also some good news to be had with the CML predicting that there will be a steady acceleration in the housing market in 2015. The article quotes the director general of the CML, Paul Smee, as stating that “Our forecasts are for gross lending to continue to grow over the next two years, and this reflects our belief that there are more stable conditions in the market than a year ago,”
December 2014, also saw a number of key mortgage rates end the year at their lowest level in 20 years. Furthermore, recent weeks have also seen the mortgage price war intensify, with factors such as low inflation and an expectation that interest rates will not rise, having triggered an escalation of the price war between lenders.
Whatever direction the mortgage market may take in the coming months, here at Search Mortgage Solutions, our experienced mortgage brokers can help you to find the right mortgage for you. So if you’re looking for a mortgage broker in London please do not hesitate to contact us today by giving us a call on, 0207 554 5685, to speak to a member of our expert team.