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Mortgage lending up but transactions fall across UK

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  • 21/06/2017
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Mortgage lending up but transactions fall across UK
The value of mortgage sales soared by over 25% between April and May despite the number of transactions falling, latest figures have revealed.

According to Equifax Touchstone, mortgage sales for the UK increased by £3.4bn in May, up 25.4% on the month before, with every region in the country seeing a boost in sales value.

The research found the average value of a residential mortgage in May was £200,338 (up from £194,005 in the same month last year).

However, latest figures from the Land Registry reveal the number of property transactions fell 3.3% in May.

John Driscoll, director at Equifax Touchstone, said: “Following weak figures last month, prompted by government intervention to cool buy-to-let property sales and election uncertainty, mortgage sales have rebounded in quite spectacular fashion, hitting a monthly high for 2017 of £17bn, with every single region experiencing notable growth.

“The outlook for the market however remains murky as issues such as political uncertainty linger; but we could see this sales boost continue into the summer months.”

But Stephen Wasserman, managing director at West One Loans, said the instability caused by the general election and looming Brexit talks have seen the market “cooling off.”

“Despite a period of gradual decline, we’re cautiously optimistic that transactions will pick up again in the coming months,” he said.

“The market has shown itself to be incredibly resilient, but, during this time of prolonged economic uncertainty, it is important that borrowers are aware of the variety of financing options available to them.

“We have seen a fivefold increase in bridging loans since 2011 as borrowers make the most of the flexibility and speed this unique type of financing offers, making it an excellent fit for navigating such choppy waters,” he added.

 

 

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