Comment on Bank of England Money and Credit stats

Following the announcement from the Bank of England today that net borrowing of mortgage debt by individuals increased from £3.6 billion to £4.4 billion in November, John Phillips, national operations director at Just Mortgages said: “These figures reinforce my belief that we should embark on the new year with some optimism in the housing market. In what could rightly be described as an annus horribilis in 2022 with interest rates rising eight times, a cost-of-living crisis and war in Europe, house prices continue to rise year on year and although approvals for house purchases fell to a two year low it was far from the drop that some had predicted.

“Affordability will continue to play an increasingly significant role in mortgage lending this year and although mortgage rates might now start with a four or a five rather than a two or a three this is a new normal that brokers and borrowers can happily live with. Brokers will need to work hard to place cases but faith in property remains high and opportunities exist to grow intermediary businesses in 2023 by diversifying into ancillary lending sectors, boosting remortgage business and making the most of opportunities in protection sales. It’s my belief that 2023 can be as good as an intermediary chooses to make it.”