· Monthly house sales have almost tripled since six year low in January 2009*
· Average house prices up 19.6% over the last six years*
· Gross mortgage lending in Q4 2014 more than doubled since six-year low Q3 2012**
Commenting on today marking six years of record low interest rates, Charles Haresnape, Managing Director, Mortgages and Commercial Lending, Aldermore said:
“Six years of low interest rates has provided a real boost to the housing market. First-time buyers have been able to get a mortgage at record low rates with smaller deposits, while landlords and ordinary homeowners have been able to remortgage their properties and save thousands. Homeowners should continue to take advantage of low interest rates for as long as they can by overpaying their mortgages as much as possible.
“While many were concerned that low rates combined with the Help to Buy scheme would needlessly amplify already active sections of the market, Government data from Q3 2014 showed that combined purchases through Help to Buy have accounted for a little under 6% of house purchases over the previous 15 months. In total, 79% of HTB mortgage guarantee scheme loans were completed by first time buyers, showing the programme is working as intended.
“Low interest rates have also been beneficial for those looking to buy property as an investment. Buy-to-let has gathered pace over the last few years, with buy-to-let lending rising at over 20% per year and the number of landlord products available topping 700. With private landlords now owning almost one out of five homes, growth in this sector shows no sign of slowing.”
*Based on Land Registry data for England and Wales
**Based on CML data
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Notes to Editors:
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