The Bank of England has reported that net mortgage borrowing increased to £4.6 billion in December, and mortgage approvals for house purchase rose to 67,200.
Kevin Roberts, director, Legal & General Mortgage Club, said: “These lending figures from the Bank of England provide further indication that the mortgage market remained steady and resilient in the final months of 2019, even in the lead up to a General Election. At Legal & General Mortgage Club, we also saw a strong end to the year with a record number of completions for December, and with a reduction in political uncertainty we anticipate the wider mortgage market will enjoy further growth in the early part of 2020.
“Consumers across the country are still clearly reaping the benefits of a highly competitive mortgage market, whether they are taking their first step onto the ladder or locking into a competitive fixed rate when remortgaging. In many instances, these borrowers are drawing on the expertise of an independent adviser to help them find the right mortgage to make their housing plans a reality.”
Dave Harris, CEO at equity release lender, More 2 Life, added: “Today’s statistics show that the number of remortgage approvals has risen slightly, perhaps due to current homeowners preferring to stay put in their homes rather than move – particularly before the impact of today’s move out of the EU on the housing market is really understood. In particular, for older homeowners who need to adapt their home to suit their needs in retirement, remortgaging may be especially appealing. However, alternatives exist that can give these consumers the funding they need to age-proof their home, such as equity release. Indeed, almost two-thirds (61%) of More 2 Life customers have said they’ve taken out an equity release loan to fund home improvements.
“For any retirees looking to take out an equity release loan for this reason, speaking with a specialist adviser is paramount. With their knowledge of the market, advisers are in the best position to recommend the most suitable product for borrowers based on their specific circumstances and ensure that more older homeowners are able to live comfortably during their retirement.”
