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Mortgage lending stable in May – Bank of England

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  • 29/06/2018
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Mortgage lending stable in May – Bank of England
Mortgage lending in May grew by 3.3%, with homes borrowing an extra £2.9bn, according to Bank of England data.  

 

The number of remortgages jumped by 8% to 51,000, the highest level since November 2017.

And mortgages for house purchase increased by 2.5% to 65,000.

The Bank said mortgage lending remains above levels seen between 2009 and 2013, but remains “modest” compared to the pre-crisis period.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “People who need to move or sell are getting on and doing it, whether that be because of death, divorce or a job move.

 

Don’t have to move, won’t move

 

“The slowdown in the market is down to the lack of discretionary movers – they are more likely to sit on their hands and delay making a decision hoping for better value in the future.

“Of course, it is all relative. If you are selling and buying any price movements will affect you both ways but if you have sold, are renting and waiting, then the wait continues.

“Interest rates are not likely to move in the short term at least and the mortgage market remains ultra competitive with lenders vying for market share.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “At a time of year when we might have expected considerably better figures, activity is slowing as prices reach the peak of affordability in many parts of the country, due to slow wage growth and tighter lending criteria.

“The outcome is fewer listings and a stand-off between what buyers want to pay and sellers are prepared to accept in already uncertain times.”

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