Mortgage lending in the UK is back at pre-crash levels. What's next?

Mortgage lending has climbed to a seven year high due to rising house prices and increasing consumer confidence within the UK. Reports show that banks approved more loans and overdrafts in October than they have ever done over the last decade.  This has led to a new dilemma for policymakers. Bank of England governor Mark Carney only recently warned about the rising level of household debt. Andy Haldane, his chief economist agreed that they may have to intervene to reduce demand across board. Their concerns and position will be further strengthened by the fact that gross mortgage lending climbed to £12.9bn in October.  This is a 26% increase from October 2014 and is the highest level since the crash in 2008. There was also a rise of 21% for house purchase loans as the number rose from 44,825 in September to 45,437 in October. There are a number of factors...
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Annual house price growth rises to 9.0%

  The Halifax recently released their House Price Index for August 2015. House prices in the latest three months (June-August) were 3.0% higher than in the preceding three months Prices in the three months to August were 9.0% higher than in the same three months a year earlier The average monthly costs associated with buying a three bedroom house in the UK for a first-time buyer are £56 lower than the typical monthly rent paid Commenting, Martin Ellis, Halifax housing economist, said: "House prices in the three months to August were 3.0% higher than in the previous quarter. This measure of the underlying rate of house price increased from last month’s 2.5% but remained below June’s 3.3%. “The underlying pace of house price growth is strong. The shortage of secondhand properties for sale on the market is resulting in upward pressure on house prices. At the same time, economic recovery,...
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Monthly house purchase lending in April down 10% on last year

Lending in April: Lending in April was weaker compared to a year ago. First-time buyers saw a decline in lending compared to March and April last year. Home mover lending volumes went up slightly month-on-month but there was a year-on-year decline compared to April last year. Home-owner remortgage activity declined compared to last year. Buy-to-let continues to grow year-on-year, mainly driven by remortgage activity, although there was month-on-month decline compared to March. Paul Smee, director general of the CML, commented: "House purchase lending in April was relatively subdued compared to last year, but similar to activity in March. The economy is recovering, with employment up, earnings growing, and competitive mortgage rates, so we expect activity to continue building as the year progresses. Buy-to-let is showing stronger growth than home-owner lending, buoyed significantly by remortgaging, which continues to remain more subdued in the home-owner market".     Lending for buy-to-let Lending for...
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Should UK House Buyers Take Advantage of Historically Low Interest Rates, Or Wait?

Whether you are thinking about buying your first home in the UK or you are planning to expand or downsize, it is to your advantage that you take a closer look at the current market conditions. Interest rates on home mortgages in the UK are at historically low levels and normally you may be wondering how long the interest rates will stay this low or if they will go even lower in the near future.
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Annual house price growth edges up in April

The strength of the economy and relatively subdued pace of activity in the housing market remains something of an anomaly. It is possible that heightened uncertainty ahead of the election is weighing on activity, though there is no compelling evidence from previous UK elections to suggest a strong impact.
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CML say seasonal lull in house purchase more prominent

The traditional beginning of year seasonal lull in lending is slightly more prominent in house purchase lending than in previous years, especially in comparison to the particularly strong levels at the start of 2014. Affordability constraints remain a factor for would-be borrowers, but we are still projecting lending to pick up over the next few months.
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Housing supply remains tight

House prices in the latest three months (December-February) were 2.6% higher than in the previous three months (September-November). The quarterly rate of change increased for the second successive month.
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Mortgage Rate War!

Recently there has been a sudden plunge in mainstream mortgage rates. Due to this lenders have started to offer 10-year fixed rate loans at less than 3% and this has sparked a rate war, which is spreading into buy-to-let. According to a specialist landlord broker, there were more than 800 buy-to-let loans available however this number has increased by more than 100 in the last 3 months. As in the owner-occupier market, borrowers with the biggest deposits fare best, but borrowing costs are falling in nearly every category of landlord.
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January shows bounce back in house price growth

House prices in the latest three months (November-January) were 1.9% higher than in the previous three months (August-October). The quarterly rate of change increased for the first time since July 2014, but remained below the rates recorded between June and September last year.
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Gross mortgage lending up 5% month-on-month

The Council of Mortgage Lenders estimates that gross mortgage lending reached £19 billion in October. This is 5% higher than September (£18 billion), and 8% higher than October last year (£17.5 billion). This is the highest lending total for an October since 2007 (£33 billion).
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20 ways to become a property millionaire

There was an interesting article in The Telegraph this morning entitled "20 ways to become a property millionaire" written by Julia Flynn. Read the full article here. She made some interesting points, which Ive listed here along with my opinions on the points:
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Halifax sees firm house price growth for July

Halifax has report firm growth in July on the monthly, quarterly and annual figures. Key facts: The monthly house price growth was +1.4% in July, being the fourth monthly increase since December. However there have also been four monthly falls - which just demonstrates the volatile nature on the monthly change The more stable quarterly figures report a +3.6% increase in the months May-July 2014 compared to the preceding three months. The annual uk house price increase was 10.2% for the three months to July against the same period in 2013. The average house price therefore stands at £186,322 Commenting, Stephen Noakes, Mortgages Director, said: "House prices in the three months to July were 3.6% higher than in the three months to April. Annually prices were 10.2% higher in the three months to July than in the same three months last year. "While supply remains low, housing demand continues to...
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Prospect of rising interest rates to impact landlords

With the UK buy to let market currently experiencing a shortage of property caused by exceptional demand, many landlords have looked to take advantage of historically low interest rates to expand their portfolios.
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Is now a good time to fix your mortgages?

A recent study reported by the BBC has shown a big North/South divide in terms of total UK mortgage lending.
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January sees continued rises of house prices

The start of 2014 has proven to be very positive with further rises in house prices, continuing the increases seen in 2013. In the month of January UK house prices increased by of 0.7% compared to December 2013 and 8.8% over the whole year.
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Nationwide sees continued momentum closing 2013

Nationwide HPI House Price Index at the end of 2013 reported seeing continued momentum in the closing period
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UK House prices up and nearing the all time highs

The Nationwide House Price Index for November 2013 was released today, showing a continued increase in UK house prices. The average mortagge rates being provided, for a 2 year fixed period, are also declining with both 90% LTV and 75% LTV mortgage rates the lowest for some considerable time.
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Number of homeowners getting debt help jumps 52% in five years

52% more homeowners are getting more debt help than five years ago, according to new research by Debt Advisory Centre.
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House prices continue their annual rate increase

House prices increased by 0.6% in June. This was the fifth consecutive monthly rise. In the 2nd quarter of 2013, house prices were 2.1% up on the first quarter of the year (January-March). This was the biggest increase on the 3 month measure since January 2010 (2.9%).
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South East lifts off with record high asking prices

Rightmove.co.uk sees new sellers asking a record £250,000 on average for property in the South East, as national the asking HPI increase yet again. The Monthly increase in average asking prices is +1.2% higher than in May and +2.7% higher than the same time last year:
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