Gross mortgage lending dips 11% in April: CML

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Gross mortgage lending was £18.4bn in April, down 11 per cent on March and up 4 per cent year-on-year, according to the Council of Mortgage Lenders.

The latest CML market commentary says it has no detailed breakdown of the figure yet, but that it thinks the main drivers will be first-time buyers and remortgage customers.

CML senior economist Mohammad Jamei says: “First-time buyers and remortgage customers appear to be buoying the market, as low mortgage rates are encouraging borrowers to remortgage and attractive government schemes are helping first-time buyers. We expect this trend to continue over the coming months.

“Home movers are having less luck. Their activity has been subdued for some time now and the low number of movers means fewer properties for sale. This supply and demand imbalance will continue to underpin house price values, even as the rate of price rises slows.”

Click here for industry analysis of the April lending figures.