Gross mortgage lending 29% higher than last year

The Council of Mortgage Lenders estimates that total gross mortgage lending in July increased to £16.6 billion, representing a rise of 12% from £14.8 billion in June and 29% higher than the total of £12.9 billion in July last year.

This is the highest monthly estimate for gross lending since October 2008 (£18.6 billion).

Commenting on market conditions in this month’s Market Commentary, CML market and data analyst Caroline Purdey observes:

“An improvement in sentiment and activity continues to show in the UK housing and mortgage markets, with a more positive picture also starting to emerge in the economy.

“Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets.”

Andy Knee, Chief Executive of LMS, commented:

“This morning’s figures show that the upward trend in gross mortgage lending is continuing, showing a 12% rise to £16.6bn in July, which is an incredible 29% higher than this time last year. Despite subdued remortgage activity during June, with both gross remortgage lending and the number of remortgagers experiencing a fall, our latest figures suggest that this area also looks to have experienced a more prosperous month in July.

“Now Mark Carney has confirmed that interest rates will not be rising until unemployment levels fall below 7%, those looking to remortgage do have a little more time to consider their options. However, they must also be mindful of the seismic shift towards higher end LTVs which will occur at the beginning of next year, and so must act soon.”

Ben Thompson, MD, Legal & General Mortgage Club says: 

“At the moment it seems that the only way is up for housing market. Following government stimulus we have now seen increasing house prices, much needed plans in place to increase the number of homes being built in the UK and now positive figures showing that gross mortgage lending is up 29% on July 2012. Its crucial that at every stage supply meets demand so that we have a balanced market that is not skewed and is accessible. The market needs to be sustainable and there is still a lot of work to be done to ensure that it is. Figures like today’s stats from the CML can only help matters though.”

Blog courtesy of Financial Reporter