Gross mortgage lending will not increase significantly until 2015, the Association of Mortgage Intermediaries has warned.
In its latest Quarterly Economic Bulletin it predicts gross mortgage lending will not exceed £135bn in 2012, compared to £141bn in 2011 and it says it is unlikely to increase during 2013 and 2014.
Robert Sinclair, director of AMI, says the current restrictions on the contributors to growth, means the mortgage market is unlikely to see improvements in the next few years.
He says: “Although gross mortgage lending jumped in Q1 due to first time buyers rushing to complete house purchases ahead of the end of the Stamp Duty holiday in April, remortgaging values remain subdued.
“There is little sign of real energy returning to the bottom of the market with few mortgage options available. We expect gross lending this year to be under £135bn despite the good start to the year. Due to lender’s restructuring their balance sheets this is now unlikely to increase significantly during 2013 and 2014.”