It appears the Government’s Funding for Lending Scheme (FLS) has provided a boost to the remortgage market, as lending has risen significantly for the second consecutive month. Homeowners are beginning to take advantage of new, competitive low loan to value (LTV) mortgages, and while we expect a seasonal lull in activity, this should be followed by further growth in the re-mortgaging and overall mortgage market in 2013.
Another cause for optimism is the noticeable increase in purchase lending, with activity comparing favourably year-on-year. After the drop in house sales during 2011, we anticipate this year’s total will easily break through the 900,000 mark for the first time since 2008.
Although a full recovery in the market will be no easy feat, competition has increased along with funding and there are signs of movement in the right direction. We are cautiously optimistic about 2013.