Gross mortgage lending for the first quarter of this year was therefore an estimated £44.9 billion. This does however represent a 12% decrease from the last three months of 2014, and a 3% decrease on the first quarter of 2014.
CML chief economist Bob Pannell observes:
"The underlying lending picture is stabilising. Sentiment and activity are showing early signs of improvement, and should be further supported by the effects of stamp duty reform. We expect to see lending strengthen over the next few months, albeit from a relatively sluggish start in 2015.”
Jonathan Harris, director of mortgage broker Anderson Harris, added:
"Mortgage approvals continue their moderate rise, as the mainstream market remains largely unaffected by the uncertainty created by the general election while the upper end of the market takes a pause.
"With the Bank of England uncertain as to when interest rates will rise, what chance do mere borrowers have? The vast majority are opting for fixed rates to give them some certainty and with lenders reducing those further in recent weeks, we are seeing the cheapest deals in a generation."
Jeremy Duncombe, Director, Legal & General Mortgage Club and Housing, comments:
“It is encouraging to see that gross lending has climbed by 7% in the year to March, as the market begins to pick up after a slow start to the year. We expect lending to increase further as the year progresses where the combination of low interest rates, low inflation and the reduction in stamp duty should stimulate demand for new homes, particularly once uncertainty around the General Election is resolved."
Tom Harrington, managing director of online estate agents Housetree.co.uk, says:
"While mortgage approvals have steadily risen since the start of the year, the less frenzied growth in the housing market compared with 2014 is welcome. The market was hectic last year, with double-digit house-price growth in many areas, which was simply unsustainable.
"A slowdown in the market is welcome. The last thing we need is to return to the situation we had in 2007/08 when people were getting mortgages that shouldn’t have been and over-stretching themselves to get on the housing ladder.
"Importantly, we are still seeing growth but it is more steady and sustainable. It is good for the wider economy and puts us in a strong position. We are broadly positive for growth in the housing market in coming months, once the uncertainty of the election is out of the way.
"However, while first-time buyers are important to the market, making it too easy for them to get on the housing ladder may turn out to be a mistake. The Bank of England reports that mortgage pricing is falling more sharply on higher loan-to-values as lenders compete for more business but there is a danger that people are able to buy with too small a deposit and then find out that their mortgage is unaffordable."
