“A five year high for gross mortgage lending during October demonstrates how the combined impact of the improving economy and government incentives has given the green light for growth in the mortgage arena.
“Despite the fact that interest rates will inevitably rise as the country pulls clear of recession, the Funding for Lending Scheme continues to help those lenders involved to furnish homebuyers with increasingly attractive mortgage rates. The Help to Buy mortgage guarantee has arrived at a busy time for many lenders with preparations underway for the change to mortgage regulations next April. It is most encouraging that – while we fully expect to see greater numbers putting their weight behind the scheme in 2014 – this hasn’t stopped more 95% mortgages appearing on the market as an early Christmas present for second steppers as well as first time buyers.
“It’s not often that housing is the commodity in short supply during the run-up to the festive season, but any developer looking at these latest lending figures can be confident that improving access to mortgages will support them to sell new homes. 2013 has helped to re-establish construction activity but it is vital not to rest on our laurels.”