The Council of Mortgage Lenders (CML) has reported that mortgage lending is now at a 7 year high
Borrowing hit £220.3bn last year up 8% on 2014 exceeding mortgage lending in 2008, however this is still below the peak of £356.8bn for 2007. Lending in December was up 23% at £19.9bn compared to the previous December which is normally a quite month.
This confirms that the property market is still hot and not showing any signs of slowing even though many believe property prices are over inflated with first time buyers struggling to get on the housing ladder. Lack of supply of homes is one of the main factors driving up prices.
The Governor of the Bank of England Mark Carney has indicated that interest rates were unlikely to rise this year continuing the supply of cheap mortgages. Many were worried that the US Federal Reserve interest rate rise late last year may have resulted in a interest rate rise in the UK which could be driving mortgage lending.
Many buyers with second properties who will face a 3% increase in stamp duty costs from April 2017 are keen to complete purchases.