Mortgages  

Mortgage lending jumps 43% in 12 months: CML

The lender trade body said although this was 6 per cent lower than January’s figure of £16.1bn, housing market indicators continue to be strong.

CML chief economist Bob Pannell said: “First-time buyers have benefited most from the government’s Help to Buy initiatives, with the more recent mortgage guarantee scheme now starting to push typical loan-to-value levels higher.

“The housing market got a further boost from last week’s Budget. This, together with other benign developments in the economy, should bolster short-term sentiment and activity.”

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Separate figures published by Connells Survey & Valuation showed the number of valuations carried out for remortgage business was rising.

The valuations firm said remortgaging activity rose 18 per cent between January and February and the number of remortgage deals has jumped 35 per cent since February 2013.

Adviser view

Jonathan Harris, director of London-based mortgage broker Anderson Harris, said the improvement in lending over the past year had been driven by buyers believing house prices will continue to rise and that they can get the mortgage finance they need.

He said: “First-time buyers continue to return to the market in their droves, boosted by both elements of the Help to Buy scheme and better availability of high loan-to-value products more generally.

“With no interest rate rise on the horizon until next year at the very least, and mortgage rates still exceptionally low, it is an excellent time to get a mortgage.”

Table: Gross mortgage lending (not seasonally adjusted)

Month
2013Feb10,621
Mar11,560
Apr12,213
May14,787
Jun14,909
Jul16,677
Aug16,440
Sep16,165
Oct17,631
Nov17,010
Dec16,762
2014Jan16,125
Febest15,200

Source: CML and Bank of England