Mortgage lending demand set to rise in 2024 and 2025

20th February 2024 Consumer Lending | #mortgage lending

Despite mortgage lending growth falling -0.1% (net) in 2023, demand for housing loans is expected to rebound this year, buoyed by the prospect of falling interest rates according to predictions by the EY ITEM Club. It alsop predicts that the Bank of England will cut its policy rate from 5.25% to 4% by the end…

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Older borrowers ditch mortgages as equity release rates rise

20th February 2024 Consumer Lending | #mortgage lending

Latest figures from UK Finance has found that the number of retired people with mortgages has decreased by 30.56% in the past year. The data showed that there were 29,060 new mortgages taken out by older borrowers (over 55) in the last three months of 2023 – down 37.1% in a year. The value of…

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Consumer borrowing fell sharply in December

Latest Bank of England (BoE) data has shown that consumer borrowing dropped sharply in December, suggesting the UK economy probably slipped into recession at the end of last year. Consumer borrowing fell from £2.1bn to £1.2bn, with credit card borrowing experiencing a steep decline. Consumers repaid, on net, £800 million of mortgage debt in December compared…

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Mortgage lending predicted to fall by 8% in 2024

12th December 2023 Consumer Lending | #mortgage lending

Lending for house purchases is predicted to fall by 8% in 2024, according to a report by UK Finance. Lending for house purchases is ex[expected to fall from £130 billion this year to £120 billion in 2024. UK Finance says higher interest rates and household costs will make it harder for people to access mortgage…

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Decade-low mortgage growth forecast into 2024

7th November 2023 Consumer Lending | #mortgage lending

Mortgage lending is expected to record decade-low growth in 2023 and 2024, according to the latest EY ITEM Club Outlook for Financial Services, as mortgage rates reach their highest since 2008, economic growth remains subdued and weakening housing market sentiment drives down demand. Overall, mortgage loans in 2023 are expected to rise just 1.5% (net) and 2% (net)…

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Two in five uncomfortable speaking to mortgage lender or landlord about budget pressures

Housing costs are a source of concern to many, yet around two in five people would potentially feel reluctant to discuss their budget pressures with their landlord or mortgage lender, according to new research in a new poll of adults, conducted by YouGov on behalf of StepChange Debt Charity. The research found that two fifths…

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Mortgage lending falls 28%

30th August 2023 Consumer Lending | #mortgage lending

Latest figures from UK Finance have shown that there has been a decline in mortgage lending, with lending for house purchases down 28% year-on-year in Quarter 2 (Q2). UK Finance says that the levels of housing market activity have remained very low by comparison with recent years in the first half of 2023. The industry…

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Mortgage lending fell by 25% in Quarter 1

New figures from the Building Societies Association (BSA) has found that mortgage lending by building societies was down nearly a quarter in the first three months of 2023 compared to the same period in 2022, reflecting falling demand in the housing market. The figures showed that gross lending in Quarter 1 (Q1) 2023 was £13.9…

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Consumer credit growth rises by 7.9%

Latest Bank of England (BoE) data has shown that the annual growth rate for consumer credit rose for the sixth month in a row in March, accelerating from 7.7% in February to 7.9% with consumers borrowing an additional £1.6 billion in consumer credit in March, on net, compared with £1.5 billion borrowed during February. The…

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Quarter of adults with complex incomes denied a mortgage

More than a quarter of adults (28%) with non-typical income streams, including those who are self-employed, freelance, or work on zero-hours contracts, have had a mortgage application rejected by a lender, according to new research from The Mortgage Lender (TML). Delving into the breakdown of employment types, those on zero hours contracts have the biggest…

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Mortgage lending transactions hits three year low

Latest market analysis by Octane Capital has found that since the Bank of England began to increase interest rates in December 2021, the total number of mortgage lending transactions has declined by 7.1% when compared to the same time period prior. The figure of 95,405 total mortgage lending transactions seen in February of this year…

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Credit borrowing doubled in January

Latest Bank of England (BoE) data has shown that consumers borrowed in January with an additional £1.6 billion in consumer credit compared with £0.8 billion borrowed in December. This was split between £1.1 billion of borrowing on credit cards and £0.5 billion of borrowing through other forms of consumer credit. Credit figures show consumer credit…

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Mortgage lending to fall 15% next year

12th December 2022 Consumer Lending | #mortgage lending

New figures from UK Finance have indicated that overall mortgage lending is expected to fall 15 per cent next year, returning to pre-pandemic levels.Whilst mortgage lending to homebuyers is expected to fall by 23% next year as the cost of living squeeze and rising interest rates make property less affordable. Loans for home purchases will…

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