16 Mar

Mortgage lending for house purchases 'on the rise'

Mortgage lending for house purchases 'on the rise'

The Financial Services Authority (FSA) has revealed that mortgage lending to those going through the conveyancing process to purchase homes is rising in the UK.

According to the organisation, finance for property buying "continues to represent an increasing share of new lending".

It noted that such activity accounted for 62 per cent of new advances and 63 per cent of new commitments in the latest quarter.

The authority also revealed that the proportion of new lending done at a loan-to-value of over 90 per cent accounted for less than two per cent of new advances.

This was a fall from the six per cent recorded during the final quarter of last year.

Recently, Andy Pratt, chief operating officer at Alexander Hall, suggested that as a result of increasing competition in the mortgage market and rising confidence among banks and building societies, the rates being charged on products are beginning to fall.

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