You are here: Home - News -

Gross mortgage lending accelerates by 30% to hit £17.6bn  

by:
  • 17/03/2016
  • 0
The Council of Mortgage Lenders estimates gross mortgage lending reached £17.6bn in February.

This is a 5% fall month-on-month from January at £18.5bn but 30% higher than February last year at £13.6bn. This is the highest lending total for a February since 2008 when gross lending reached £24.1bn.

CML economist Mohammad Jamei, said: “This growth rate is in line with what we saw in the closing months of 2015. The recovery is being underpinned by market fundamentals in the UK, as wages grow and unemployment falls, helped by government schemes and competitive mortgage deals.”

Jamei doesn’t expect a significant lending acceleration but expects to see a rush to complete before the buy-to-let Stamp Duty changes on 1 April followed by a lull.

“Affordability pressures continue to weigh on activity, as do the low number of properties coming on the market, though this has been improving very recently.”

Steve Griffiths, head of sales and distribution at Kensington, said the industry must ensure that this rise in lending is not limited to those who tick all the boxes of a standard mortgage application.

If we really want to grow a healthy and fair mortgage market, the industry needs to recognise and promote the needs of the self-employed and contract workers as well as those credit worthy individuals who have experienced credit blips in the past and subsequently got back on their financial feet.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: ‘While the industry absorbs the news in yesterday’s Budget, the mortgage market continues to tick over, with lending in February up almost a third on the same month last year.”

He added: “We expect this situation to continue in coming months. The challenger banks are keen to lend, while more established lenders also wish to bring in more business, which will be reflected in cheap rates and some tweaking of criteria. On the buy-to-let side, lenders will need to adapt to lending to limited companies as it looks as though an increasing number of investors will go down this route.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Carney signals a cut in interest rates over the summer - https://t.co/4whlTOGOSO
  • First-time buyers helped to buy - https://t.co/tHV9WipC4o
  • Broker bosses share corporate Brexit messages to urge calm - Marketwatch - https://t.co/ivh430IcCt
  • RT @SamPartingtonMS: LendInvest halts seconds lending and tightens criteria after Brexit vote Mortgage Solutions https://t.co/Z6sN5RluOu vi…
  • RT @SamPartingtonMS: Singapore bank's move to halt London lending badged 'knee-jerk' decision - Mortgage Solutions https://t.co/HFf7VoeZdK…
  • RT @SamPartingtonMS: Together reassures brokers of stability in wake of Brexit - Mortgage Solutions https://t.co/yR5ZXtTjFp via @specialist
Read previous post:
Easter bunny chocolates
Last chance to win a Hotel Chocolat cabinet

In the last of our Easter series of chocolate indulgence giveaways, leading GI provider Berkeley Alexander in association with Mortgage...

Close