Home loans surge in 2013: CML data

The CML data for the fourth quarter of 2013 showed gross UK mortgage lending totalled £51.4bn – an increase of 36 per cent compared with the fourth quarter of 2012.

Overall for 2013, gross lending totalled £176.4bn, up 21 per cent on 2012. According to the CML data, lending to first-time buyers for 2013 rose in volume 23 per cent on 2012, while home-mover lending was up 3 per cent compared with the previous year.

The data also showed buy-to-let loans increased 18.6 per cent in 2013 compared with 2012.

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Paul Smee, director-general of the CML, said: “The consistent upward lending trend seen throughout 2013 would suggest relative optimism.

“But there are challenges ahead, not least in implementing the mortgage market review regulation in April and in ensuring there is no suggestion of a property bubble. All this will be key to determining how the market will perform in 2014.”

Jeremy Duncombe, director of Legal & General Mortgage Club, said there were still significant obstacles for people looking to move. He said: “House prices in certain parts of the country continue to rise far faster than the rate of wage inflation, making them simply unaffordable for many.”

Table 2: Loans for house purchase and remortgage (2013 overall)


Number of housepurchase loans

Value of house purchase loans, £m

Number of remortgage loans

Value of remortgageloans, £m






Change from





Adviser view

Mark Harris, chief executive of mortgage broker SPF Private Clients, said while Help to Buy was playing a big part in encouraging first-time buyers to get on the housing ladder, lenders were offering high loan-to-value deals at even more competitive rates.

But he warned interest rates could be set to increase.

Mr Harris said: “With the economic recovery still in its infancy a [Bank of England base] rate rise doesn’t look to be on the cards this year.

“However, swap rates have risen in the past few weeks, forcing some lenders to reprice their five-year fixes upwards.

“There is no need for borrowers to panic as rates are still very cheap from an historical perspective, but they should plan ahead and budget for when interest rates do rise to ensure they can afford their mortgage.”