Mortgage lending grows annually by 26% - Mortgages - News - Moneyfacts

News

Mortgage lending grows annually by 26%

Mortgage lending grows annually by 26%

Category: Mortgages

Updated: 18/07/2013
First Published: 18/07/2013

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 It is now over 6 months old so the content may be out of date.

Figures released today have suggested that total gross mortgage lending increased to £15 billion during June this year, as market conditions and interest from buyers continued to improve.

Largely driven by record low mortgage rates and wider credit availability via the Government's Funding for Lending Scheme, overall lending for the second quarter of 2013 increased to an estimated £41.9 billion according to the Council of Mortgage Lenders (CML).

This estimate is 24% higher compared with the previous three months and represents the highest quarterly lending figure predicted since 2008.

Monthly gross lending was also estimated to have grown by 2% compared with the £14.7 billion recorded in May this year.

Bob Pannell, chief economist at the CML, said: "Improvements in the cost and availability of mortgage credit are underpinning a meaningful recovery in the housing market. In recent months, we have seen the strongest performance for mortgage lending since 2008.

"However, although the pace of first-time buyer activity is approaching a quarter of a million per annum, it is worth bearing in mind that this is still barely half of activity rates a decade earlier, and so far below what might be considered normal levels," he warned.

What next?

Search all mortgages
Mortgage repayment calculator
How much can you borrow 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 Any products featured may be withdrawn by their provider or changed at any time.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On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market.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.
 
Close