It has been reported that mortgage lenders have had their strongest January since 2008, showing signs that the housing market is set for another active year.
Whilst lending is not up on December 2015 figures, January lending figures were reported at being at £17.9 billion (Source: Council of Mortgage Lenders), a figure which has not been as high since January 2008 when lending figures were at £25.2 billion.
The increase in lending is thought to be due to cheaper mortgage deals, lower expectations of rising interest rates and schemes such as help-to-buy, as well as buy-to-let investors pushing house sales through in order to beat an impending 3% rise in stamp duty in April.
Markit, a financial information services provider reported that more than half of households don’t expect interest rates to rise over the next 12 months, creating a confidence boost which is leading to increased borrowing.
Whilst end-of-year lending figures were slightly down at the end of 2015, the CML expects a steady growth in lending over the next two years. A promising sign for the housing market!