Brokers say lending to top £195bn in 2014

More than one in three brokers believe gross lending will be above £195bn next year.

Over the past two weeks Mortgage Strategy has run a straw poll asking brokers how much they believe mortgage lenders will advance in 2014.

Around 34.2 per cent of the 213 brokers who voted believe the mortgage market will advance over £195bn next year. This is split up into 17.8 per cent who believe up to £205bn will be advanced to borrowers and 16.4 per cent who believe the market will advance up to a whopping £215bn.

One in four – 25.3 per cent – believe the market will advance between £185bn and £195bn, while 21.1 per cent and 19.7 per cent of brokers believe the mortgage market will hit up to £175bn and £185bn respectively.

At the end of last year, the Council of Mortgage Lenders predicted the market would advance around £156bn this year, although this forecast is likely to be exceeded by the end of next month. To the end of October, lenders had advanced £142.3bn to mortgage borrowers.

The trade body also forecast gross lending of £150bn next year but this is likely to be increased next month when it comes to reviewing its forecast for 2014/15.

London & Country associate director of communications David Hollingworth says: ”I think what this gives is a real flavour of the optimism in the broker community and how things could pan out next year. And that stems from how busy the market is next year and what products are at brokers’ disposal.

“I think the higher estimates are probably going a bit too far but clearly we are looking for a marked improvement on this year’s lending.”