Home loan values slump to 21-month low

value of home loans
value of home loans
Experts predicting the value of home loans advanced will rise

Property finance experts are predicting that the value of home loans advanced in 2015 will rise 9% to £222bn despite the value of mortgages advanced in January slumping to a 21-month low of £14.3bn.

According to the Council of Mortgage Lenders, that figure is 11% lower than the £16.1bn worth of home loans that were advanced in January 2014, and 14% lower than the £16.6bn borrowed in December.

But the CML says January is typically a slow month for the market and its figures are not seasonally adjusted.

It adds that a mortgage price war that has seen the rates charged for two-year fixed rate loans drop to 1.2%, the overhaul of stamp duty that will benefit most homeowners buying for less than £937,000 and house price growth spreading across the country will all help the property market.

CML chief economist Bob Pannell says: “Although seasonal factors will continue to weigh on activity levels for a while longer, we expect the underlying picture to pick up over the coming months.”

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