Rate Of Increase Of Loans Slowest For More Than Ten years
Anybody who watches the news, or takes an interest in financial matters, will be aware of the significant slow down in the housing and home owner loan markets at the present time, largely due to the lack of affordable home owner loan products from lenders and an unwillingness to commit to a large loan in the current economic conditions from potential borrowers.
But the scale of the total problem in the housing and home owner loan markets is perhaps even worse then many people realised. The number of new home owner loans and mortgages being offered has been steadily falling for several months now and has reached its lowest level of growth for more than ten years.
The total amount of gross lending on new home owner loans had fallen to £7.8 billion in November this year, which shows a reduction of 13.5 per cent on the same period twelve months earlier.
Net lending increased by just £1.5 billion in November, which is less than half the amount for the same time a year ago and the lowest level of growth since August 1999, according to the latest figures from the British Bankers Association (BBA).
Whilst there was a significant reduction in the number of new loans for house purchase, the past few months have seen an increase in the number of remortgage cases, as borrowers start to shop around for a better deal on their home owner loan.
David Dooks of the BBA said “Remortgaging with banks was strong in November as borrowers chose to replace maturing fixed term mortgages. Lending to non financial companies showed its first net increase since February, Partly reflecting finance for takeover activity.”
On that note, everybody at Best Loans would like to take this opportunity to wish our readers a very happy Christmas and a prosperous New Year!
