Lower interest rates enable borrowers to pay off mortgages more quickly. But, with household budgets under pressure, how much have they been doing so? Analysis published for the first time today gives some surprising – and encouraging – answers. One-third of loans taken out since 2005 have been overpaid. And the £31 billion in additional capital payments is more than 10% over and above what was actually due. It amounts to a sizeable accumulation of household wealth.
In our last issue of the year, we also look at what’s been positive about the mortgage market in 2012: Funding for Lending and NewBuy; increased lending for house purchase and buy-to-let; lower than expected arrears and possessions, and increased support for borrowers in difficulty. We’re not heralding a return to a booming mortgage market, but the outlook for 2013 is more positive.
But there are regulatory clouds on the horizon. Our third major article highlights three crucial submissions we are making on behalf of lenders this week and next. We have a series of separate, but complex and inter-related, regulatory reforms – and how they are implemented, and co-ordinated, will be crucial for lenders and borrowers.
To see all the stories in full, go to the latest issue of CML News & Views.
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The CML will be making a donation to its charity partner, Habitat for Humanity, instead of sending Christmas cards. We will all our members, associates, and other contacts a happy Christmas and a peaceful new year.More Articles by Council of Mortgage Lenders (CML) ...