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Gross lending to hit £270bn by 2018-end – UK Finance

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  • 04/12/2018
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Gross lending to hit £270bn by 2018-end – UK Finance
Gross lending is likely to hit £270bn by the end of this year, whilst product transfers may be an additional £150bn, director of mortgages at UK Finance, Jackie Bennett said.

 

Speaking at UK Finance’s Annual Mortgage Dinner on 3 December 2018, Jackie Bennett (pictured) said that despite some uncertainty in the broader economy, it has been a good year for mortgages, with more to come in the next few months.

However, she revealed that there are thousands more customers with inactive lenders or unregulated owners that cannot be helped, even if they can demonstrate they are successfully making higher payments.

Jackie Bennett said: “Many of those customers cannot meet the new affordability requirements and lenders cannot use the previous transitional arrangements because of the way the Mortgage Credit Directive was brought in, in the UK.

She said that UK Finance is continuing to explore with the FCA what might be possible for these customers, but this is likely to require handbook and possibly legislative changes.

She added: “We expect that the buy-to-let (BTL) market will continue to see the impact of tax, legislative and other changes, particularly as landlords have to start paying their increased tax bills.

“We also expect the government to start firming up its proposals on leasehold to ensure that customers get a fair deal if they are in a leasehold property.

Also, she said that UK Finance and the industry have worked closely with the FCA and government to mitigate the cliff edge risks associated with a ‘no-deal’ Brexit.

She concluded: “However, a no-deal outcome would still cause significant disruption for firms and their customers on both sides of the Channel, which is why we strongly support a managed exit together with an appropriate implementation period. Parliament now has a responsibility to prevent a deeply damaging no-deal Brexit.”

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