NatWest, one of the UK’s leading mortgage lenders, has reported a 4.4% increase in its mortgage lending to reach £9.5bn in the first quarter of 2020. This is the highest level of mortgage lending since the start of the financial crisis in 2008.
The increase in mortgage lending is largely attributed to the Bank of England’s decision to cut interest rates to 0.1%, making mortgages more affordable for borrowers. This has resulted in an increase in demand for mortgages, as people look to take advantage of the low interest rates.
The Bank of England’s decision to reduce interest rates has also been beneficial for existing homeowners, as it has reduced their monthly mortgage payments. This has allowed them to save money and use it to pay off their mortgages faster, or to make other investments.
NatWest’s increased mortgage lending has been welcomed by the government and industry experts alike, as it is seen as a sign of economic recovery. The increased lending is also expected to help stimulate the housing market, as more people will be able to purchase homes.
Overall, NatWest’s increased mortgage lending is a positive sign for the UK economy. It shows that the Bank of England’s decision to reduce interest rates has been successful in stimulating the housing market and encouraging people to take out mortgages. This is likely to have a positive impact on the economy in the long run, as more people are able to purchase homes and invest in the property market.