Mortgage lending has grown by over a third in the last year, according to figures from the British Bankers Association (BBA).
Gross mortgage borrowing in the UK jumped a staggering 37% to £10.3 billion in November, touching its highest level in the past two years.
Data from the trade body also points to a 39% increase in the number of approvals for home purchases compared with November 2012. Remortgaging activity also improved, with the number of remortgaging loan approvals growing by 20% on the year.
The main drivers behind the strong demand for mortgages were low interest rates and banks’ efforts to increase the availability of property loans, The Telegraph believes.
Local banks approved a total of 76,425 mortgages in November, including 45,044 for home purchases. The number of remortgaging loans stood at 22,303, while other secured loans came in at 9,077.
The BBA is upbeat that the country’s mortgage situation will continue to pick up pace in 2014. Meanwhile, the growing demand for property and the insufficient supply is forecast to inflate prices, resulting in an 8% uptick in values for the entire year.
Another factor fuelling growth in the mortgage market is the government’s Help to Buy scheme, considered responsible for over £1 billion of all new home loans provided since its introduction in October, David Cameron announced earlier this month. Over 6,000 people have applied for a mortgage under the scheme and a total of 750 property transactions have been sealed since its inception, he added.
Have you (or anyone you know) been affected by the Help to Buy scheme?