Property Bubble Lending Up 57 Per Cent

Property Bubble Lending Up 57 Per Cent.

Figures released by the British Bankers Association (BBA) suggest that mortgage approvals are up 57% on the same time last year.

In addition, actual completed deals, the point of loan/buy/sale is up 38% on last year.

What this means is that we can see completions increasing over the year as 57% more mortgage loans have been approved.

The economy is warming up and confidence is rising.  We have already seen rises in consumer spending on card and many building groups are seeing 40%, 50% and 55% rises in activity for 2014.

Comment

A property bubble is on its way, we expect another significant year for house prices rises in 2014 and 2015, we also anticipate, but only after the general election in 2015, interest rate rises from the Bank of England.

Whether interest rate rises will slow down the housing market remains to be seen.  Mortgage rates have not fallen to the same extent as Bank of England base rates, so may be the property bubble could get a little bigger before its burst.