Banks approved over 95,000 mortgages last month, making it the highest rate of approved mortgages for the month of July in the last ten years! Total borrowing in July was £26.1bn, up 2.9% in comparison to July 2018, according to the industry body UK Finance.
Other signs of consumer confidence were also given by UK Finance, who said that Credit Card spending climbed 8.2% to £12bn. Repayments hit a record high too, showing strong signs that consumers are managing their finances more effectively.
UK Finance also added “Due to low interest rates and a competitive market, we’ve seen more and more borrowers shift towards taking out a five-year fixed rate mortgage, both when buying a house or when re-mortgaging to a new deal," said Callum Bilbe, an analyst at UK Finance.
10 Year mortgage deals are also becoming more common for many homeowners, who wish to secure their interest rate for an extended period, helping them plan their finances more effectively.
Five years ago, there were only 22 ten year mortgages deals available in the market, with an average interest rate of 5.09%. However, today, there are 157 ten year mortgage deals with an average interest rate of 3.01%.
Further signs of growth are backed by the Bank of England’s quarterly report on credit conditions, which has found lenders reporting a significant demand for mortgage products. The bank of England expects these strong signs to continue in the third quarter.
The property market continues to be strong despite Brexit and the recent political turmoil, and this is further backed by high consumer demand for new mortgages. We certainly see a strong property market at the Seths, with many of our properties being SOLD quickly to First Time Buyers and existing Homeowners wishing to move to a new property.
If you are looking to buy your first home or are looking to move to a new property, click here to view our latest properties for SALE. Don’t miss out moving to your perfect home!
Speak with one of our property experts today, who will help you find your ideal home by calling 0116 266 9977!
20 Loughborough Road, LE4 5LD / 0116 266 9977
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