Mortgage Lending Up In June
16th July 2015
Today the Council of Mortgage Lenders, (CML) has reported that mortgage lending in June showed a “significant rise”, up 29% on the previous month to an estimated £20.5 billion. This is also a year on year increase of some 15%.
Whilst an increase in mortgage lending figures was expected, especially given the drop in service levels from lenders we have seen due to high numbers of applications, the end of the drawn-out election process and a new government has helped to push things forward.
With interest rates remaining low for the foreseeable future and a new wave of competition between lenders expected to rage over the second half of the year, I suspect that this upward trend will continue, albeit by perhaps more modest amounts.
The main constraints are not consumer demand, but rather lenders underwriting criteria and affordability considerations which are still tight following the implementation of the Mortgage Market Review. As competition between lenders begins to shift from simply cutting rates to opening up their criteria once more, this should help further, but with a drastic lack of housing stock, especially in high demand areas of the country limiting supply and keeping property prices high, there is only so far this can go.
This is Bow, he’s a plucky little Boston Terrier and knows a thing about mortgage applications. His owner, Patrick, is one of our clients and Bow here helps with his paperwork. If there’s anything you need to know about mortgage applications or the paperwork entailed then check out our advice hub – it has everything you need!View the mortgage guides
Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.