Gross mortgage lending rises by 21% - Mortgages - News - Moneyfacts


Gross mortgage lending rises by 21%

Gross mortgage lending rises by 21%

Category: Mortgages

Updated: 20/06/2013
First Published: 20/06/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Gross mortgage lending increased to the highest level since 2008, according to latest statistics released by the Council of Mortgage Lenders (CML).

Home loans worth an estimated £14.7 billion were issued to borrowers during May this year, up from £12.2 billion in April and 17% higher than reported in the same month last year.

Activity from mortgage borrowers has increased steadily over the past ten months since the Government launched its Funding for Lending Scheme, designed to encourage banks and building societies to lend money to households and non-financial companies.

Additional research by has highlighted how lower rates offered as a result of the scheme being introduced in August 2012 have boosted lending activity.

In August last year, total lending stood at £12.9 billion, whilst the average two-year fixed mortgage rate stood at 4.65%. Since then, the average rate on a two-year fixed mortgage has reduced to just 3.74%, whilst lending has risen to the £14.7 billion reported today.

Chief economist at the CML, Bob Pannell, said: "Funding conditions, helped by the Funding for Lending Scheme, continue to look favourable and are supporting more competitive mortgage pricing and availability and a gradual resumption of lenders' risk appetite."

What next?

Search all mortgages
Mortgage repayment calculator

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.