You are here: Home - News -

Lenders strengthen efforts to contact customers before deals expire – UK Finance

by:
  • 26/06/2018
  • 0
Lenders strengthen efforts to contact customers before deals expire – UK Finance
Gross mortgage lending in May increased 8.8% to £22.2bn from a year earlier, driven by remortgaging as more lenders contacted customers before their current mortgage deal expires, according to UK Finance.

The latest figures from the trade group also showed mortgage approvals last month increased by 3% compared to the same month a year earlier.

Increased approval numbers were driven by remortgaging, up 18% from a year earlier.

In contrast, approvals for house purchase were 3.8% lower than the same month last year.

Credit card spending was 2.3% higher in May than a year earlier, with outstanding levels of card borrowing having grown by 5.7% over the year.

Eric Leenders, managing director, personal finance at UK Finance, said: “May’s increase in mortgage approvals was driven by strong growth in remortgaging, as a large number of fixed-term mortgages came to an end and homeowners took advantage of a competitive market to shop around for attractive deals.

“Increased efforts by lenders to contact their customers before their current mortgage deal expires have also contributed to this rise.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “This is more of a spring bump rather than bounce as approvals for house purchases were lower at a time when we would have expected increased activity, even though gross lending is considerably higher, boosted by remortgaging.

“Many buyers and sellers are sitting on their hands and those that are recognising the new reality in this price-sensitive market are negotiating hard but transactions are taking longer as a result.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Brokers vent frustration over lenders that change their minds on deals

Lenders changing their mind on a deal is the biggest industry gripe for brokers, according to a survey.  

Close