October Reports Show Mortgage at Highest Level in 11 Months
The council of mortgage lenders (CML) has said that gross mortgage lending has risen to £12.9 billion and this rise is 4 percent higher than same month of last year. The figure is indicating that new government scheme is working and it has boost up lending.
According to latest reports recorded in September, it has been noted that there is sharp rise in cash advance loans and it has reached at £11.4 billion. According to the reports, the treasury and bank of England together launched funding for lending scheme in initial days of August. The scheme has promoted the lending business for households and businesses. Such changes in lending scheme resulted into increase in the number of mortgage loans. However, it is important to note that best mortgage loan deals are available for higher deposits.
Bob Pannell, chief executive at CML has said that remortgage as well house purchase activity, both appears to have picked up recently. The improvement has been supported by pricing and availability of mortgages. Other cash advance industries like logbook loans, personal loans etc. have also affected after launching of this scheme.
The CML has highlighted the evidences that are showing increase in remortgaging. The reports have also followed the string of lenders who have raised SVR since March. That time more than one million mortgage borrowers have seen rising cost of mortgages.
Recent figures released by Bank of England shows that 28,000 remortgages approves in September. The figure suggests that in coming months, remortgage activity may act less. Remortgages are very subdued throughout this year as told by lending bodies. Lenders borrowing criteria is going to be harder in coming months and borrowers who want to take another deal may face harder challenge in this context. It is essential for both lenders and borrowers to understand lending and borrowing terms while mortgage loans or remortgages.