There has been a lot of good news on mortgage lending and availability recently. There are now more mortgages to choose from than at any time since September 2008 says the Mortgage Advice Bureau. And gross mortgage lending in July was up almost 30% on the same time last year according to the Council of Mortgage Lenders.
That all sounds pretty positive, but we need to put the current figures in context – a quick glance at the graph on the right will explain why.
Gross mortgage lending between April and June this year is still over a third lower than the same period in 2003 and it’s less than half what is was in 2006.
Even accepting that the boom in the mid-2000s prompted, and was fuelled by, inflated borrowing, mortgage lending has a long way to go before it returns to anything like ’normal’ levels.
In short, things may be moving in the right direction, but talk of a renewed boom in prices are far fetched.