The Mortgage Hut has seen a year on year rise of 30% in mortgage applications in August despite the traditional seasonal slowdown in the housing market over the summer months.
Activity in the first-time buyer and new build sectors has increased strongly. This relates to the back of figures from UK Finance showing that gross mortgage lending equalled £22.1 billion in June, up 9% higher than in May and 3% than June last in 2016.
Chris Schutrups, group managing director of The Mortgage Hut, identifies August as a traditionally quiet month for the mortgage market. “We have seen a healthy uplift in mortgage applications thanks to the great products available for first-time buyers and new builds, including a two-year fixed rate, help to buy mortgage of 1.15% from the Leeds Building Society and a five-year fixed rate first rate first time buyer mortgage of 2.39% with a 10% deposit, from Atom Bank.”
“We have also benefitted from having a full sales team in August which has enabled us to service mortgage enquiries at a time, when other brokers are low on staff and aren’t able to deal with a rise in mortgage enquiries.”
“It’s great news that the government has extended the Help to Buy scheme until 2020,” he added.
“This will boost the housing market and provide much needed support for first-time buyers trying to get on the housing ladder.”
Schutrups revealed that figures back up the recent market data, showing that the housing market has rebounded post-election.
He concluded: “Uncertainty surrounding its immediate future could threaten the short to medium plans for developers.”