Gross mortgage lending up 9% in March

The Council of Mortgage Lenders estimates that total gross mortgage lending increased to £11.6 billion in March.

Related topics:  Mortgages
Amy Loddington
19th April 2013
Mortgages
This is 9% higher than February’s gross lending figure of £10.6 billion but 8% lower than £12.6 billion in March 2012. However, this was just before the first-time buyer stamp duty holiday expired, distorting meaningful comparison.

Gross lending for the first quarter of 2013 was therefore an estimated £33.8 billion. This represents a 9% drop from the last three months of 2012 but matches the gross mortgage lending total for the first quarter of 2012.

Commenting on market conditions in this month's Market Commentary, CML chief economist Bob Pannell observes:

"Conditions in the housing and mortgage markets continue to show signs of improving. The improvement in funding markets over the past year, reinforced by the incremental benefits of the Funding for Lending Scheme, has been the key catalyst behind stronger housing activity.

"The Help to Buy mortgage guarantee scheme – while still embryonic as yet – holds significant firepower, and has the potential to increase activity from 2014."

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

"Today’s figures illustrate a hardening of demand and the increase in lending is in large part due to the benefits brought by the Funding for Lending Scheme. Data from our latest Mortgage Mood Survey showed that about 70% of UK homeowners feel the current value of their property is 'about right' and this rational attitude is also stimulating market activity. As a result we are seeing a marked increase in FTB activity which should only continue to gather pace in the coming months."

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