British Mortgage Industry Perks up in November
The Council for Mortgage Lenders (CML) recently announced that mortgage lending was on the upswing in November 2011, increasing by 3% on a year-on-year basis. This was just the second time it happened in 2011, as second mortgages also enjoyed a mild uptick, moving up from 30,700 in November 2010 to 31,200 in November 2011.
In addition to the above numbers, 65% of November’s borrowers – as compared to 62% in October 2011 – opted for fixed-rate mortgages. This has been traced to the Bank of England’s record-low 0.5% base rate and other factors such as fixed-rate deductions made by several financial institutions across the UK.
However, these numbers are not anything to rejoice about yet. Several economists remain cautious about the prospects for 2012, especially with the worldwide economy still trying to recover from its protracted swoon.
Unemployment rates are still high – and going up in some locations – concerns about the credit crunch are still in the air and as consumers approach the new year with trepidation, the CML is projecting a 5% drop for the cost of property in 2012.
In related news, the CML is quite hopeful about first-time buyer activity this year. According to CML director general, Paul Smee, the stamp duty concession is motivating a lot of first-time buyers to take action before March, and this should lead to further increases in their numbers.
November 2011 statistics were kind to these first-timers, as the 17,300 loans they took out accounted for £2.1 billion, also a slight increase on a year-on-year basis.
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