Borrowers struggle, but Buy to Let grows
If you are a first time buyer and looking for a mortgage, you may struggle; figures show that lending to first-time buyers was 3pc down on the year before. However the same cannot be same for BTL landlords and it is this group that is the only group borrowing more than a year ago.
The council for Mortgage Lenders recently published figure for November indicate a general slowdown in the housing market. Another fact was revealed and that was that buying property to let was buoyant and was up by a healthy 9% compared to the previous year. The same cannot be said for mainstream buyers and this group showed a 7% fall over the previous year with only 55,600 loans in November.
Another figure which has seen a dip is the re-mortgaging sector where borrowers decide to stay in their home but switch lender, this is down by a massive 16% on the same period of November last year. This is surprising when you consider that mortgage rates have fallen during the period and we have seen some of the best ever rates for people looking to re- mortgage their homes.
It is believed in certain quarters that this may be due to the perception that getting a mortgage today is tougher than it has ever been on the back of stricter lending rules that were introduced in April of last year. Of course the forthcoming election in May of this year is also having an effect due to the uncertain outcome.