View more on these topics

CML: Gross lending up 16% year-on-year

Money-Notes-Currency-GBP-Pounds-700.jpg

Gross lending grew 16 per cent year-on-year in April, according to new figures from the Council of Mortgage Lenders.

Lending reached £18.5bn last month, which was 29 per cent lower than the £26.2bn achieved in March.

CML economist Mohammad Jamei says: “As we move past the stamp duty change that came into effect at the start of April, we expect to see a quieter second quarter, as some transactions that were due to take place were brought forward to the first quarter of this year. This is likely to mean that over the next few months buy-to-let takes a back seat as lending is driven by first-time buyers, movers and remortgage customers.

“The underlying picture still shows signs of growth, as the market remains underpinned by strong fundamentals such as increasing wages and rising employment. But it is possible that the uncertainty around the upcoming EU referendum in June will weigh on activity in the upcoming months.”

IRESS principal mortgage consultant Henry Woodcock says: “Even with the availability of high numbers of low interest rate mortgages deals, it’s no huge surprise that borrowing in April was so much lower than in March given the false peak which resulted from a rush to beat the Chancellor’s 3 per cent tax hike on BTL.

“Will we see a rise in lending in May? That will depend on a number of factors. Lenders may increase the number of long-term deals of up to 40 years to tempt borrowers struggling to afford shorter terms but, on the flip side, as the Bank of England interest rate remains static, lenders may increase interest rate margins. The lowest rate tracker deals have already risen by 0.24 per cent in the last six months. The unknown effect of the EU vote in June may further depress lending in May as borrowers wait and see both the result and the impact on lenders and house prices.”

Recommended

Bank-of-England-BoE-Building-Horse-700x450.jpg

BoE slashes UK growth forecast ahead of Brexit vote

The Bank of England is warning of a slowdown in UK economic activity due to Brexit fears, as the Monetary Policy Committee votes to keep rates on hold. The BoE’s May inflation report, published today, says activity growth slowed in the first quarter of this year and “a further deceleration is expected in Q2”. The […]

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg

Gross lending soars to £25.7bn in March: CML

A rush to beat the stamp duty deadline caused gross mortgage lending to soar 43 per cent month-on-month and hit £25.7bn in March, according to the Council of Mortgage Lenders. Gross lending was 59 per cent higher than the previous March’s figure of £16.2bn and is the highest March figure since 2007, when gross lending […]

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

CML: Gross lending rockets 30%

Gross mortgage lending grew 30 per cent year-on-year in February, according to the Council of Mortgage Lenders. Lending hit an estimated £17.6bn last month, which was the highest February total since 2008 when lenders advanced £24.1bn to borrowers. While lending was up year-on-year, it fell 5 per cent from £18.5bn in January. CML economist Mohammad […]

The return of inflation

Alex Ralph, manager of the Artemis High Income Fund, sees further pressure on government bonds as inflationary pressures build on both sides of the Atlantic.

Phone - thumbnail

Pension Wise — now taking calls…

Those with decent-length memories will recall that in the 2014 Budget statement George Osborne announced the new (and entirely unexpected) pension freedoms. The new rules come fully into force in less than two weeks.

Newsletter

News and expert analysis straight to your inbox

Sign up