We're all going on a summer holiday...not!

The clock has just past midnight on 31st August. I have been back home from my last appointment for just over an hour and whilst I sip my tea, and listen to every "old romantics" favourite radio station reminiscing on the 80s, I ponder...WHAT THE HELL HAPPENED THIS MONTH?!?

August is seasonally a month of little activity in the mortgage industry. Families are mostly away spending ludicrous amounts of money on family holidays, piling on the pounds whilst eating yet another pizza as "I'll start the diet when I get back" becomes one of the most commonly used phrases.  Britain's ponder on how dark their skin can really get if exposed to enough sun, and really the prospect of buying a house or remortgaging is the last thing on everyones mind.

So what the hell happened this August?!

This month has proven to be the best month I have had since the credit crunch began. In fact, the best month since I peaked back in 2007. Additionally, the majority of the business was purchase related. It seems there is a confidence to buy again in the market place. Either that or more people have found my phone number!! The fact is, it wasn't just me. The majority of my broker friends have all enjoyed a very busy August. It seems the announcements of H1 results from lenders, exposing drops in market share and smaller profits year on year, got the lenders angry. They priced with an aggression not seen since Tyson stepped foot in the ring in the 90s. For those out there that were thinking "Is now a good time to buy?" the temptation of rates as sexy as 1.48% over base for two years were simply too good to ignore. Rates fixed over 5 years at 3.39% have made  people say "Deal" rather than "No Deal" as people face up to the fact that rates could potentially not really get much lower so it's a good time to lock in.

I predicted earlier this year that 5 year money would drop a lot lower than the 4s we were seeing. I actually predicted that we may even see rates as low as 3.50% over 5 years and I felt I was putting my neck on the line in saying so. So 3.39% was almost as much of a shock to me as anyone. But this aggression, this appetite has now extended to higher LTVs. Skipton's 90% tracker at 4.88% was so popular with clients that Skipton had to withdraw the product with immediate effect and no notice. They were swamped with applications, and not surprisingly so. Abbey stepped up their claim on 90% deals as did Northern Rock, and only today I completed an 85% deal on a fixed rate over 2 years at 3.95% with £500 cashback WHAT A DEAL (and yet again Northern Rock - I say well done).

The truth of the matter is, the market has gone just a little bit crazy. In a world where football players are getting paid over £350,000 a week, it seems lenders have realised that money is still in existence and that perhaps they were a little, erh...tight for want of a better word and have decided to get back to business. We're seeing improvements on score cards, and personally I am seeing a much more proactive approach from lenders, looking to see how they can help us again.

Its beautiful.

Seriously, it is!

I have been encouraged by many things this month. Obviously the activity, but also the lenders willingness to help. To aid, as best they can, to get these applications through to offer stage and to see us get over the finishing line. It seems lenders are back on board the "mortgage lending gravy train". So if there is a message to get across tonight at near on 1am, it is that a) i should be in bed and b) that lenders are on side again. They want to lend. They are helping us to push things through and not simply saying no. They are starting to see that not everyone in Britain has a 40% deposit and that lending at 85% or even 90% can be priced competitively and that there is a massive market for it.

Well done this month lenders.

Well done this month underwriters.

This month you have excelled. So keep up the efforts and we will all go into 2012 with strong pipelines, and clients will go into 2012 in homes so affordable that they don't have to wear 6 jumpers in winter to save on heating bills.

Horrah, for the mortgage industry!