Although British mortgage lending remains elevated by 8.8% from this time last year, this number is driven largely by remortgaging of current properties rather than new loans for new buyers. In fact, new property approvals are actually 3.8% lower than last year. Likely reasons for these changes include the end of many fixed rate terms, concerns about the potential for rising interest rates in the future, and the inadequacy of current programs meant to help new buyers such as cuts to the Stamp Duty.
- Although total mortgage lending in the UK was 8.8 percent higher than this tome last year, mortgages to new buyers were actually down.
- The high rate of remortgaging was driven by factors like ending fixed rate terms and worries about interest rates.
- The Government could possibly improve the rate of new mortgages for new buyers by cutting or eliminating the Stanp Duty and expanding programs like Help To Buy.
“Increased lending over the year was drive by remortgages rather than loans to new buyers, the data from UK Finance reveals.”