View more on these topics

Analysis: Benign backdrop will aid borrowing


The Council of Mortgage Lenders’ half-year market commentary has much in it to make intermediaries smile. Taken alongside falling unemployment data and a jump in confidence last month based on wage growth and low inflation, the outlook for borrowing ought to be good for many months to come.

So despite the CML revising its gross lending forecast for this year down from £220bn to £209bn, H2 will see a recovery in activity levels likely to continue into 2016, despite the probability of interest rates starting to rise.

On the downside, the continued rise in house prices will make saving for a deposit harder and those lender affordability calculations more difficult. But that brake on activity is likely to be minor in the face of continued undersupply of property to buy.

In addition, the statements by Bank of England governor Mark Carney about imminent rate rises should provide a much needed stimulus to the remortgage market.

The immediate future is looking good and plans for the next couple of years should be able to be made with a degree of confidence. 

As the CML commentary says: “A benign economic backdrop should underpin a gentle improvement in housing and mortgage market activity.” 

We can live with benign.



‘Super Thursday’ brings ‘no change’

Just one member of the Monetary Policy Committee voted to increase the base rate at last week’s meeting. The minutes from the meeting show Ian McCafferty voted to increase the base rate by 25 basis points to 0.75 per cent. McCafferty believed the risks of overshooting the Bank’s medium-term inflation target of 2 per cent […]


MAS makes a loss but gives bosses a pay rise

The Money Advice Service has reported a loss of £786,000 for the year 2014/15 and handed chief executive Caroline Rookes a £20,000 pay rise. It marks the first time the MAS has made a loss since it was launched in 2010. In that time, levy income has more than doubled from an original take of […]


Leeds’ valuation pilot shaves up to 5 days off application process

Leeds Building Society is piloting a new method of instructing valuations, which it says has shaved up to five days off the application process. The lender has been testing the new process, which sees it instruct the valuer on the day it receives the application. For fee-free cases, the society contacts the broker to advise […]


News and expert analysis straight to your inbox

Sign up