Gross lending tops £152bn in 2012

Gross mortgage exceeded £152bn in 2012, according to new figures released last week from the FSA.

In its most recent mortgage lending data, a survey of some 300 lender and mortgage administrators, the regulator said lenders advanced £39.4bn in the fourth quarter, compared with £39.6bn in the third quarter and £36.4bn and £36.9bn in Q1 and Q2, respectively.

The FSA’s gross lending figure for 2012 is some £9bn more than the Council of Mortgage Lenders’ estimate, that covers only its members, which accounts for 95 per cent of lending, although this is uprated.

Around 63.4 per cent of borrowers took out a fixed rate mortgage in Q4, up for 56 per cent in Q3 and 53.6 per cent in the fourth quarter of 2011, suggesting borrowers are looking to take advantage of a flood of cheap fixed rates currently entering the market.

Coreco director Andrew Montlake says: “If these figures are correct and we do get a 10 per cent rise everyone expects this year at least then we will be nudging over the £165bn figure in 2013 which would be most welcome.”