London mortgage market strong as 2014 looms

New research has found that 85% of estate agents in the UK believe Help to Buy will boost sales by up to 30% by stimulating the property market and 86% believe the government was right to bring forward the scheme’s phase two mortgage guarantee from a launch that was originally scheduled for January 2014.

In London loans grew across the board with the number of loans advanced to first time buyers in the city up by 24% on the previous quarter and up by 32% compared to the third quarter of 2012.

The CML said that strong house price growth in London, and the knock on effect on the typical loan amount has resulted in stronger growth in the value of lending to first time buyers who were the key driver in the first half of the year. But the data also shows that remortgagors and home movers have shown greater signs of life in the third quarter.

Meanwhile, the Bank of England has announced changes to its Funding for Lending scheme and the incentives for mortgages will come to an end. But the general opinion seems to be that this will not adversely affect the residential property market.

According to the Council of Mortgage Lenders the decision reflects the improvement in funding market conditions that has been experienced in recent months and that the announcement should not come as a shock. Indeed, mortgage lenders are well equipped to meet their funding needs, as wholesale funding market conditions have improved.

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