Are you protected?

Have you considered Life Insurance with the Mortgage Shop?

InsuranceContact us

Mortgage lending rises

Tuesday, 17 January, 2012

Mortgage lending picked up in November, according to a trade association, as the number of homeowners taking up fixed-rate deals hit the highest level in more than two years.

The number of house-purchase loans increased year-on-year for only the second time in 2011 by 3% to 47,000, or a 5% increase in value to £6.9bn, according to the Council for Mortgage Lenders (CML). Remortgaging also increased to 31,200 from 30,700 the previous November.

Fixed-rate mortgages were taken out by 65% of all borrowers, CML said, up from 62% in October as borrowers took advantage of current favourable rates.
Mortgage providers - such as Nationwide and the Post Office - have slashed rates on a range of fixed-rate mortgages as the Bank of England continues to hold its base rate at a historic low of 0.5%.

Despite the growth in lending in November, Howard Archer, chief UK and European economist at IHS Global Insight, said the housing market still remains low compared to long-term norms and is likely to come under increasing pressure in 2012.

Mr Archer said house prices are expected to fall by 5% in 2012 as "weakened economic activity, rising unemployment, muted wage growth and very low consumer confidence" weigh on the market.

Elsewhere, CML said first-time buyers took out 17,300 loans worth £2.1bn in November, up 4% in volume and 5% in value compared to a year ago.
First-time buyers continued to see a decline in the proportion of their income accounted for by mortgage interest payments - 12.2% in November, compared to 12.3% in October and 13% last year.

CML said that while the number of first-time buyers has declined "markedly" since the credit crunch, the proportion of loans advanced to first-time buyers has remained "remarkably steady".

In November, first-time buyers took up 37% of the market. Meanwhile, home-mover loans increased by 2% in value and volume compared to a year ago.
Looking ahead, CML director general Paul Smee, said: "We should expect a further increase in first-time buyer activity over the next few months as they push through their purchases to take advantage of the stamp duty concession before it ends in March."


Jamie Grierson

Belfast Telegraph

Important Information

Important Information

Your home may be repossessed if you do not keep up repayments on your mortgage.

Typically we do not charge a fee for mortgage advice, however if we do, depending on your circumstances, it will be a maximum of £250.

As with all insurance policies, conditions and exclusions will apply.


The Mortgage Shop (N.I) Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority Registered Office: The Mortgage Shop (N.I) Ltd, 132 Great Victoria Street, Belfast. BT2 7BG. Registered Company Number: NI26842. Registered in Northern Ireland.