A recent statement issued by HSBC advised homeowners to contact their current lenders and ask for a better deal. According to the bank, mortgage payments were costing UK borrowers billions more than they should be.
The advice from the bank followed the release of data by the British Bankers Association, which declared that mortgage borrowing had increased by 26% during October 2015, in comparison to the same month in 2014. A total of £12.9bn was loaned out to borrowers, with 27% more mortgages being approved by lenders than last year.
The number of mortgages being approved to buy a new home increased by 21%, while the number of approved re-mortgages increased by 34%. The Council of Mortgage Lenders also released figures which agreed with those released by the BBA, showing that October had been the most active month for mortgage lending since 2008.
According to the BBA, the reasons for the increase in mortgage lending is that the current deals are offering some of the lowest interest rates, while consumer confidence is growing along with incomes.
Commercial lending presented a different story, with loans to the construction sector continuing to fall. One of the reasons believed to be responsible is that companies are raising cash by issuing shares and bonds rather than a bank loan.
Mortgage advisers are required to undertake CeMAP training to ensure they are fully qualified to provide advice to all consumers. More borrowers are thought to be seeking advice before re-mortgaging and committing to new deals, to ensure they have the most suitable product for their circumstances.
