View more on these topics

Brokers positive on Q1 mortgage lending despite 8% fall in January

Mortgage experts say they are undeterred by the 8 per cent fall in gross mortgage lending in January and forecast a considerable rebound in the coming months.

Money-UK-Currency-House-Monopoly-Property-480

Figures from the British Bankers’ Association, published this week, show gross mortgage lending dropped 8 per cent in January to £7.7bn, down from £8.4bn in December. Year on year, this represents a 5 per cent fall from £8.1bn in January 2012.

Industry experts attribute this downturn in part to cyclical market pressures and say the results have done nothing to suggest the first quarter of 2013 will not prove considerably more successful.

Start Mortgages financial services manager Tom Cleary says: “These latest results are cyclical. As the first quarter builds, so does the market momentum with strong instruction levels feeding through and I predict a big uplift in February.

“As far as the Funding for Lending scheme goes, there was £4.4bn drawn down in the final quarter of 2012 and I think it could rise to £6bn in the first quarter of this year. All I see from lenders is greater appetite and the FLS is definitely fuelling that.”

The Society of Mortgage Professionals chief executive Richard Fox says: “I think January’s results are more to do with the weather. The market is currently turning a corner and from February and March onwards I think we are going to see an upturn in business.”

Recommended

ING Direct

ING Deadline sets new deadline for last deals

ING Direct has reinstated a deadline for new mortgage applications and determined that 5 March will be the last opportunity for borrowers to secure a mortgage with it.

6

Abbey launches seven day exclusive

Abbey for Intermediaries is launching a seven day special of a two-year fix at 2.49 per cent up to 75 per cent LTV with a £995 fee.

Paul Tucker MPC 480

BSA warns negative interest rates will hurt mutuals

The Building Societies Association has warned negative interest rates would hurt mutuals by cutting their main funding line of retail deposits, but brokers say it could bring a much-needed boost to the mortgage market.

Mike Thornton
1

Former broker Mike Thornton wins Eastleigh by-election

Former Northern Rock BDM and broker Mike Thornton has led the Liberal Democrats to victory in the Eastleigh parliamentary by-election, retaining former cabinet minister Chris Huhne’s seat for the party.

What attendees thought of the LendInvest Property Development Academy

LendInvest ran its first Property Development Academy in London last month. Attendees from all over the UK gathered to learn how to better equip themselves with the skills they need to grow their property development portfolios. Speakers from CBRE, Gleeds, Arcadis, Gowling, Residential Edge and AZ Urban Studio gave their insights into their respective fields […]

Newsletter

News and expert analysis straight to your inbox

Sign up