Figures from chartered surveyor e.surv reveal that the number of house purchase mortgages granted in September topped 68,000 for the first time since February 2008.
Their latest Mortgage Monitor paints a positive picture for the UK housing market. 68,212 house purchase loans were granted in September, up 9.6% from the previous month, and wider figures are even more promising – last September there were just 49,987 loans advanced to prospective homeowners, representing a year-on-year increase of 36%.
This would indicate that lenders' confidence in the economy seems to be strengthening with lending figures being pushed to the highest levels since the financial crisis took hold, and it isn't just risk-averse lenders in the field either.
High LTV loans are also on the rise. In September there were 8,185 mortgages advanced to borrowers with a 15% deposit or less, up 11% from August and an impressive 60% more than twelve months ago. Again, it's a post financial crisis record, with this being the highest number of high LTV loans advanced since September 2008.
This is all before the mortgage guarantee element of Help to Buy has an impact.
Richard Sexton, director of e.surv, comments:
"The housing market is speeding back to recovery, and that's before Help to Buy even begins to kick-in. In September, more people were buying a house than at any point in the last five-and-a-half years. And the rate of recovery is increasing rapidly. Lenders are saying yes to more borrower applications, and are more willing to lend to borrowers with small deposits than they were last year.
"Our economy is the fastest growing in Europe – and it's being driven by the recovery in the housing market. The introduction of Help to Buy 2 could floor the accelerator, and we could see unprecedentedly quick growth."
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