The BBA said good deals are still available to first-time buyers while existing borrowers are switching to lower fixed rates to control their mortgage costs.
Gross mortgage borrowing in August was £12.1bn, which is 17% higher than a year ago. In contrast, bank lending to companies fell in September and continues to be subdued.
Richard Woolhouse, chief economist at the BBA, acknowledged the rising mortgage figures and said: “Credit card purchases were 6% higher last month than a year ago. Buoyant consumer confidence and rising wages may well be playing a role here.”
Jonathan Harris, director of mortgage broker Anderson Harris, said: “With Mark Carney, governor of the Bank of England, now suggesting that rates rises are a ‘possibility not a certainty’, it remains to be seen whether borrowers will lose the urge to remortgage.”
He added: “Lenders are keen to lend and have plenty of funds to do so – as we move towards the end of the year it is possible that we could see some exceptional deals as banks look to meet their targets for the year.”
House sales to first time buyers accounted for 29% of total sales in September – a rise of nine percentage points from last month. The number of house-hunters searching for properties dropped this month.
NAEA figures suggested house sales to first time buyers accounted for 29% of total sales in September – a rise of nine percentage points from last month. However, the number of house-hunters searching for properties dropped this month.
