Gross mortgage lending rises year-on-year

Gross mortgage lending reached £18.4 billion in April this year, according to new estimates from the Council of Mortgage Lenders (CML).

The figures from the CML put gross mortgage lending 11% below March's lending total of £20.7 billion, but 4% higher than the £17.7 billion lent in April 2016.

In this month's market commentary, CML senior economist Mohammed Jamei said: "First-time buyers and remortgage customers appear to be buoying the market, as low mortgage rates are encouraging borrowers to remortgage and attractive government schemes are helping first-time buyers. We expect this trend to continue over the coming months.

"Home movers are having less luck. Their activity has been subdued for some time now and the low number of movers means fewer properties for sale. This supply and demand imbalance will continue to underpin house price values, even as the rate of price rises slows."

John Eastgate, sales and marketing director of OneSavings Bank, added: "A steady undercurrent of demand, caused in part by some of the most attractive mortgage rates the UK has ever seen, has not been enough to push up mortgage activity in April. This isn't a great surprise, as we have seen a general reduction in consumer confidence coinciding with an increase in inflation. This is likely to be only temporary, however and I don't see any long term trend being established by these figures. Inflationary pressures will pass and low rates will continue, and the mortgage market will remain robust."

 

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