Mortgage lending rises slightly in 2011

by Simon Ward on 23 January 2012  |  2 comments
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Council of Mortgage Lenders' figures shows mortgage lending rising although the future is "uncertain".

Figures from industry body the Council of Mortgage Lenders (CML) show that mortgage lending rose by 3% in 2011 compared to 2010. And 2011 ended with a fifth consecutive month of higher year-on-year lending.

Meanwhile, Bank of England lending figures show the number of remortgages rose slightly on 2010, while new purchase mortgage activity was flat.

The Bank of England says that mortgage lenders are still reporting first-time buyers struggling to raise the necessary deposit to get a mortgage.

But the CML says the immediate future for mortgage lending is "uncertain" and is dependent on what happens next in the Eurozone.

As we’ve reported before, lenders are likely to tighten up their credit scoring criteria and be more selective this year. However, lenders are promising more ‘product innovation’.

Some (such as Halifax and HSBC) are offering mortgages with no fees, while others (such as Nationwide) have launched new products aimed at people with small deposits. To get a round-up of the best fee-free mortgages, read Mortgage fees rise by 70%, while if you only have a small deposit saved so far, this article rounds up the best deals for borrowers in your position.

There has also been a resurgence of interest in buy-to-let mortgages and more products are coming onto the market. We’ll round up the best of these in a future article.

Research from Halifax says that the cost of mortgage repayments as a percentage of income has now fallen to its lowest level since 1997.

At lovemoney.com, you can research all the best deals yourself using our online mortgage service, or speak directly to a whole-of-market, fee-free lovemoney.com broker. Call 0800 804 8045 or email mortgages@lovemoney.com for more help.

More: How to stand the best chance of getting a mortgage | How to get a mortgage with a small deposit