It has been announced by Spanish Banking group Santander that they are to restrict lending amid fears of the amount of personal debt that is on the increase throughout the UK.
The type of lending that Santander are referring to is not just in relation to mortgages but also in relation to loans being used to fund vehicle purchases.
Interest rates have remained at a record low however, the amount of personal debt owed by individuals throughout the UK is increasing rapidly.
As interest rates cannot remain low forever, lenders will understandably be concerned about repayments being made as well as the bigger impact on the economy.
Santander’s total mortgage lending fell by £1 billion to £11.6 billion in the first half of 2017 compared with the previous year. Their typical average mortgage stands at £198,000, £146,000 throughout the majority of the UK with London standing at £236,000.
Not only have Santander cut back on their lending, there has been a drop overall in the amount of mortgage approvals in June, taking the approvals figure to the lowest in 9 months. The Bank of England has announced that there were 64,684 approvals in the month, down from 65,109 in May and the lowest figure since September 2016.
Much of the cutbacks on lending may point to a weakening in the housing market as well as the economy in general.
So there’s no better time to lock into the low fixed rate deal or any other great offer to save you money on your mortgage. Why not have a chat with us about your next mortgage deal? Give us a call on 03333 44 85 or email us at enquiries@onlinemortgagecalculators.co.uk and we’ll get back to you as soon as we can.