This is 6% lower than January’s figure of £16.1 billion, but 43% higher than the £10.6 billion lent in February last year and the highest total for a February since 2008.
Commenting on market conditions in this month's Market Commentary, CML chief economist Bob Pannell observes:
"Housing market indicators have continued to be strong over recent months, once seasonal factors have been taken into account.
“First-time buyers have benefitted 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 this week’s Budget. This, together with benign developments in the economy more widely, should bolster short-term sentiment and activity.
Stephen Smith, Director, Director, Mortgage Club & Housing at Legal & General, comments on the CML mortgage lending figures:
"These figures from the CML show that the mortgage market is returning to a healthier level of lending. With Help to Buy 1 now being extended until 2020, it is likely that the upward trend in mortgage lending seen recently will continue despite the introduction of the MMR. However, there are still some major obstacles for those looking to get on the housing ladder or move from their current home. 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. The government’s initiatives to build more homes, announced in yesterday’s budget, will go some way to help keep the market fluid and ensure demand doesn’t continue to outstrip supply. Despite this, we still need to see much more stimulus to house building.”
Jonathan Harris, director of mortgage broker Anderson Harris, says:
"While mortgage lending is estimated to have tailed off a little in February compared with January, it is still considerably higher than February last year, and is the best February we have seen since 2008. Confidence continues to grow, with buyers believing that house prices will continue to rise and that they can get the mortgage finance they need.
"Although the headlines were all about pensions and savers, the Budget gave a boost to the housing market, with the extension of the first phase of Help to Buy and the commitment to build many more new homes. The removal of the need to take out an annuity gives more flexibility to pension funds and it will be interesting to see whether lenders will now be more prepared to consider such funds as a reasonable repayment strategy for an interest-only mortgage. We have had clients with large pension pots who have been refused interest-only mortgages in the past because lenders have not considered these funds suitable for paying back the capital but with the rules changing, it may mean more options for borrowers.
"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."
