View more on these topics

August mortgage lending reaches nine year peak

House-Home-Property-Ladder-Mortgage-700x450.jpg

Fears that the housing market would suffer following the Brexit vote were “wide of the mark”, according to the Council of Mortgage Lenders, as figures for August found lending increased by 7 per cent.

Gross mortgage lending reached £22.5bn in August, according to the CML, up from the £21.1bn of lending approved in July and the highest August figure since 2007, when gross lending reached £33.6 billion.

The figure also represented an annual rise, up 15 per cent compared to August 2015 when mortgage lending totaled £19.5bn.

Senior economist at the CML, Mohammad Jamei, says: “Widely voiced fears in recent months about the housing market have proved to be wide of the mark.

“Prospects for house purchase activity post-referendum look slightly subdued, when compared to late 2015 and early 2016. However, sentiment in the market recovered in August. This is reflected in stronger-than-expected transaction figures, and in our gross lending estimate.”

He says the recovery is likely to be down to a number of factors, including the Bank of England’s monetary stimulus and its introduction of the Term Funding Scheme in August.

“A subsequent uptick in approvals is anticipated, albeit still at levels lower than earlier this year as affordability constraints and lack of properties on the market for sale continue to bear down on borrowers,” says Jamei.

Marketing director at Phoebus Software Richard Pike says: “Now really is the time to take advantage of the lowest mortgage interest rates on offer.”

Recommended

Home-House-Money-Property-700x450.jpg

CML: Gross lending static in July at £21.4bn

Gross mortgage lending held steady in July at around £21.4bn, according to the Council of Mortgage Lenders. The figure is down 0.4 per cent from June’s £21.5bn and down 1 per cent year-on-year from £21.6bn. CML chief economist Bob Pannell says: “Indicators are likely to provide truer readings of market conditions the further we move […]

Warning-Sign-Yield-Slow-Stop-Danger-700x450.jpg

Mortgage arrears now at record lows: CML

The amount of mortgages in arrears is now 0.84 per cent, the lowest since records began in 1994, according to new figures from the Council of Mortgage Lenders. The CML says there were 92,500 mortgages in arrears of at least 2.5 per cent at the end of June, down from 95,900 at the end of […]

Cloud-House-Couple-Mortgage-Dream-700x450.jpg

First-time buyer lending up 28% in June: CML

First-time buyers borrowed £5.5bn in June, up 28 per cent on May and 25 per cent on June last year, according to the Council of Mortgage Lenders. This equated to 34,300 loans, up 24 per cent month-on-month and 17 per cent year-on-year. The trade body found homeowners borrowed £12.3bn in June, up 29 per cent […]

Champion the small-scale developer

Traditional development finance must price in project and liquidity risk, but if your project is completed and you have begun selling units you could be eligible for cheaper funding, writes Matthew Tooth of Lendinvest. A product which prices purely for liquidity risk is one way to help developers lower their costs. This type of product allows […]