According to a recent survey by e.surv, (part of the LSL group), house purchase lending in October is predicted to have increased by 10% compared to September lending activity.
LSL estimates that there were 54,713 house purchase loans in October, the highest the market has experienced since January this year, and the second highest since December 2009.
Richard Sexton (Business Development) at e.surv stated: “It suggests the mortgage market is beginning to find its feet again after a torrid six months caused by tight funding conditions for lenders.“ I would speculate that much of the improvement is down to the Funding for Lending scheme. It didn’t have a significant impact in Q3, but now it is beginning to flood lenders’ balance sheets with cheaper funds and has encouraged them to increase their mortgage lending.” However, he cautioned: “The improvement in October is encouraging, but it is by no means a sign the market will recover to its pre-financial crisis health.”
“Lenders aren’t confident enough to really begin focusing their efforts on first-time buyers, which is why lending to high LTV borrowers still forms a disproportionately small share of the mortgage market.”
If you are looking to finance a property, why not pop into your local branch of Intercounty and chat to one of our mortgage specialists.