Mortgage lending reaches seven-year high
Mortgage lending has hit the highest level in seven years as rates from UK banks have remained at record lows.
According to the British Bankers Association show gross mortgage lending reached £12.9bn in October, up 26% from a year ago and the highest level since August 2008. This was also up 8% on September’s total of £20.1bn.
Those who never could can now consider a business mortgage to fund a venture thanks to some of the most competitive deals in the last 8 years.
What does this mean for business owners?
Thinking about selling your business? Gross mortgage lending is on the up. This news means that there are potentially more buyers out there looking for a freehold business. Now that more people are being approved for mortgages than at any other point in the last seven years more people are considering buying their own business.
Re-mortgage rates are on the up too. Seen as an easy way to release some capital, a re-mortgage can be an attractive option. With total lending the highest since July 2008, advancing £23.6bn, re-mortgaging could also result in a better deal for you.
Re-mortgaging increased by 34 per cent as homeowners moved to more attractive deals in the low-rate environment.
Mark Carney, governor of the Bank of England, has suggested that rates could stay at a record low of 0.5 per cent until 2017.
Overall borrowing is also on the up which is good news for businesses. Consumer borrowing through high street banks’ credit cards grew at an annual rate of 5 per cent in October, surpassing the growth rate of other credit card issuers in the market at 3.9 per cent.
The BBA said the real estate sector has been actively reducing bank borrowing over the past three years, while high street lenders have been disposing of property loans.