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This year will see better-than-expected mortgage lending Posted On 15 April 2024

A large number of mortgage brokers across the UK have predicted an increase in mortgage lending throughout this year, contradicting official forecasts

 

Last year, when borrowers tightened their belts in response to fast rising living expenses, gross loans plummeted by 28% to £226 billion. But according to a recent TMA Club survey, one in five brokers predicted that total lending will exceed £251 billion this year. A further three out of five anticipate gross loans to reach between £220 and £250 billion this year.

 

Experts have noted that concerns over inflation are abating more quickly than the Bank of England had anticipated, and governor Andrew Bailey's most recent comments hint that a base rate decrease may occur later in the year. The change that occurred in the first three months of this year has increased adviser involvement and borrower trust. Although lenders are undoubtedly pricing to capture market share, there are still challenges related to affordability, which is keeping activity high.

 

Remortgage activity is constant as credit conditions continue to improve, but there are mounting indications that the property market is strengthening as buyer demand increases. What is already evident in the UK property market was mirrored in the Bank of England's Q1 Credit Conditions Survey. The state of credit is getting better. Both the quantity of mortgages available and the number of mortgage applications that are granted are rising.

 

The first quarter of this year saw no decline in mortgage pricing, but neither was there an increase either, and for the upcoming quarter, mortgage pricing is predicted to remain flat. This is good news for homebuyers and additional proof that the UK housing market has not entered a state of flux while we wait for a general election.

 

 

#property #mortgage #selling

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