High street lending figures out today suggest the mortgage market is cooling, with house purchase approvals for September 10 per cent down on a year ago.
Equity release and remortgaging approvals have also fallen, the British Bankers’ Association (BBA)’s latest figures show.
Commenting on the figures, Mark Harris, chief executive of mortgage broker SPF Private Clients, says while the market “may be taking a breath”, now is a great time to get a mortgage.
“The Mortgage Market Review slowed applications down and lenders are playing catch-up before the end of the year. They also want to create a strong pipeline for 2015.”
Lenders are competing for low-risk business by cutting rates, rather than making it easier for high-risk borrowers to get mortgages, he says.
“Some borrowers will therefore still find it tough to get a mortgage, particularly if they require interest only, are an older borrower or are self-employed.”
Richard Sexton, director of e.surv chartered surveyors, comments: “Looking ahead, the road looks steady. We are still a way off where we should be, but there are reasons to be optimistic.
“First-time buyers are the backbone of the UK’s mortgage market and the foundation on which the mortgage market’s post-recession recovery has been built. But after an extended period of flat wages, low interest rates and high inflation, many of them are still struggling to save for a deposit.
“Help to Buy has provided a route around that barrier. It is enabling worthy, responsible borrowers – many of whom are being held back from the property market by the economic downturn – a chance to get onto the ladder regardless.”
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