You are here: Home - News -

Mortgage lending stable as market ‘ticks along’

by:
  • 29/06/2017
  • 0
Mortgage lending stable as market ‘ticks along’
Lending secured on homes was £3.5bn in May, slightly higher than its recent average of £3.2bn, according to the Bank of England’s latest money and credit statistics.

The figure was £600m higher than May 2016, when lending secured on homes was £2.9bn.

Mortgage approvals for house purchase remain broadly stable at 65,202, totalling £11.7bn, said the bank. This was the same value as in the previous month, which saw approvals of 65,051. In May 2016, approvals reached 66,722, however value was similar – £11.6bn.

Meanwhile approvals for remortgaging increased slightly to 42,955 with a value of £7.4bn, slightly down on the previous six-month average of £7.7bn. In May 2016 approvals for remortgaging were 42,855 – and £7.5bn.

Annual growth in consumer credit remained strong at 10.3% in May, below its November 2016 peak of 10.8%, but £1.7bn higher than in April.

Jonathan Harris, director of mortgage broker Anderson Harris, said the figures are signs that the mortgage market is proving resilient. “While there is likely to be considerable uncertainty ahead as a result of the ongoing Brexit negotiations, the mortgage market appears to be shrugging these off and steadily ticking along,” he said.

“Approvals for house purchase are broadly stable although remortgaging continues to rise as borrowers take advantage of cheap fixed-rate mortgages in particular.

“However, with a reported third of all borrowers sat on their lender’s standard variable rate, there are still too many borrowers paying more than they need to. As speculation continues regarding the possibility of an interest rate rise, it may be that more borrowers are persuaded to take the plunge and secure a cheap deal before they miss out.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added that the figures tally with other reports of the market being fairly stable.

“However, we would have hoped for higher numbers compared with this time last year, considering that the market then was still suffering following the introduction of the Stamp Duty surcharge,” he said.

“Over the next few months, we expect the situation to remain fairly similar as buyers and sellers come to terms with the ‘new normal’ – longer transaction times and softening prices underpinned by a shortage of supply and insufficient housebuilding.”

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.
  • Jo Wilson from Legal & General Home Finance talks about her Best BDM nomination and her love for the equity release… https://t.co/0tHhv6Lwvc
  • Sponsored content: Four reasons your client wants a product transfer by Halifax Intermediaries… https://t.co/c1k3dj88LO
  • Nationwide trims rates as Accord ups cashback on buy-to-let deals - https://t.co/nbsZh3z49u

Read previous post:
Barclays revises income multiple policy

Barclays Bank has updated its income multiples policy for residential lending.

Close