Increase in mortgage borrowing

April 29th 2016
By: Mary.Wilkins
Increase in mortgage borrowing

In March 2016 the figures show that mortgage borrowing has increased to its highest level in 8 years.  The new stamp duty rules meant there was a rush of buy-to-let investors and buyers of second homes who completed their sales and beat the increase in stamp duty.

The rise of 3% to all property bands for non-owner occupiers was announced in November’s Autumn Statement.

The British Bankers’ Association figures show that the average amount borrowed to buy a property last month was £184,200 – an increase from the £167,700 in the same month in 2015, and a rise of £3,300 since February 2016.  Figures from the Council for Mortgage Lenders supported this information.

In March there were an additional 20% of mortgage approvals and 25% extra remortgages according to the BBA figures.  Increased demand for the loans indicates better credit availability combined with strong household finances and low interest rates.

So now may be the time to think about investing in the property market which can provide you with a better return than most banks.  Why not give our Lettings Hub a call on 020 8687 0077 to talk through the process.