Today saw the release of the latest set of data from the Council Of Mortgage Lenders, (CML) stating that Gross Mortgage Lending rose by 5% in July compared to June, although this is still 3% down from July 2009.
In total Gross mortgage lending was an estimated £13.6 billion in July, increasing from £12.9 billion in June and compared to £14 billion in July 2009.
The modest rise in mortgage activity we’ve seen since June has been set against a low base, and although there has been a noticeable rise in the number of products available to borrowers, and more lenders returning to the market, the mortgage landscape is by no means close to returning to “normal”.
It has been a dismal World Cup for the average England supporter, but whilst the Scots rejoice in our misfortune, we can reflect on the fact that with every negative there is a positive and lessons to be learnt for all of us.
So what can a bunch of overpaid, oversexed and overinflated egotists teach us all? The answer is simple. In order to deal with adversity and to move forward it is the team that is more important than any one individual, no matter how talented they may feel they are.
Let’s be honest, I am sure no-one expected to see that the Bank of England Monetary Policy Committee, (MPC), had suddenly raised rates from their current 0.5% level, although some commentators have been a little jittery with inflation nudging 3%.
What is more interesting is that not only have the MPC decided to take a pause in their campaign of Quantitative Easing, £200 billion seems to have been enough of a spending spree for now at least, but you could argue that Bank Base has now entered a new phase – I call it “the expectation phase”. This is where many people expect a change but are not quite sure when and it is this expectation that can be a driver for all manner of decisions.
I was up before the crack of dawn yesterday morning, 4.15 am to be precise, for a stint on BBC Radio 5 Live’s’ “Wake Up To Money” followed by BBC Breakfast TV chatting about mortgage rates after one too many cups of strong coffee. We were talking about the different predictions around Bank Base Rate and what the hell the general public make of it all when it comes to making their own decisions with regards to their own mortgage.
Can anyone tell me where 2009 has gone? In fact, actually don’t bother as I suspect that like many we will be glad to see the back of another tumultuous year which has seen many dramatic changes.
The positive news is that 2010 looks like it will be a good year, in fact, I am sure of it.
There are many opportunities for all of us as things slowly begin to improve, and whilst I am under no illusions that it will be hard work, the positives are clearly there.
Andrew Montlake, Communications Director at Coreco and ‘Mortgage Personality of the Year 2008’, gives his views — honest and no holds barred — on the latest developments within the mortgage and property markets.
