LETTING & ESTATE AGENT

Help to Buy sparks big surge in mortgage activity

Help to Buy sparks big surge in mortgage activity

The early launch of the Help to Buy mortgage guarantee prompted a surge of activity from lenders and borrowers across the market during October, according to the Mortgage Advice Bureau.
 
According to MAB, product numbers swelled by 907 – the biggest monthly increase since April 2011. Two- and three-year fixed rates and two-year tracker rates all reached record lows.
 
Using data from more than 500 brokers and 800 estate agents, MAB says purchase applications were up by 19% in the month and 59% year-on-year. It does not, however, report on approvals.

The average Loan to Value being applied for was 72.2%.

 The greatest monthly increases in buyer activity occurred in the south-west (up 50%) and the north (47%). In London there were 24% more mortgage applications from home buyers in October than September.
 
Brian Murphy, head of lending at MAB, said: “The Help to Buy mortgage guarantee is still in its infancy and it’s reasonable to assume the best deals for consumers are yet to come.”