Supply and demand – is the mortgage market on the up?

The Bank of England has reported that there has been a surge in demand for mortgages in recent months.  This trend has also hit the remortgage market and lenders believe that it will keep rising over the coming months. But why the sudden increase? Mortgage rates are at an all time low, which is accredited, in the main, to the Bank of England’s Funding for Lending Scheme.  This in conjunction with a general increase in consumer confidence and steadily rising house prices are certainly responsible for the increased activity. Is it sustainable? Mortgage lenders are adamant that they are as stringent as ever with regard to credit scoring and underwriting.  The reintroduction of 95% mortgages and the introduction of government backed “Help to Buy” schemes means that people previously struggling to find a mortgage can now apply.