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Mortgage lending at seven-year high

Mortgage lending imageGross mortgage lending rose by eight per cent in 2015, taking the estimated total for the year to £220.3 billion compared with £203.3 billion in 2014, according to the Council of Mortgage Lenders (CML).

The CML estimates reveal that gross mortgage lending hit £19.9 billion in December, three per cent below November’s lending total of £20.5 billion, but 23 per cent higher year-on-year at £16.2 billion.

Gross mortgage lending for the fourth quarter was therefore an estimated £62.3 billion, up 23 per cent on the corresponding period in 2014.

Mohammad Jamel image“The low inflation environment, along with real wage growth, an improving labour market and competitive mortgage deals have all helped to underpin demand,” said CML Economist Mohammad Jamel.

Looking ahead though, he said the upside potential looks limited over the near-term. He added, “The supply of existing and new properties on the market remains weak and affordability pressures weigh on activity. There is an added element of uncertainty as we wait to see the impact of tax changes on the buy-to-let sector.”

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