Mortgage lending hits £22.1bn in June

UK Finance estimates that gross mortgage lending reached £22.1bn in June, 9 per cent more than May’s lending total of £20.3bn. Last month’s lendi

UK Finance estimates that gross mortgage lending reached £22.1bn in June, 9 per cent more than May’s lending total of £20.3bn.

Last month’s lending was 3 per cent greater than the £21.5bn lent in June last year.

Gross mortgage lending for the second quarter of 2017 was therefore an estimated £60.3bn. 

This is a 3 per cent increase on the first quarter of this year and a 6 per cent increase on the £57.1bn lent in the second quarter of 2016.

Gross mortgage lending, not seasonally adjusted            

              Total

            £m

Year            

2006            340,931

2007            356,802

2008            247,805

2009            140,573

2010            133,807

2011            138,257

2012            144,512

2013            177,715

2014            203,384

2015            221,778

2016            245,141

Jeremy Duncombe, director of Legal & General Mortgage Club, said the figures showed that gross mortgage lending remained strong in June, despite the political rumblings.

However, he said the issue of long-term affordability persists. 

Mr Duncombe said: “With average house prices now six times higher than the average salary, and up to 11 times more in London, many want-to-be homeowners are unable to get on the housing ladder. 

“A recent study by Nationwide Building Society showed buyers could borrow up to £11,500 more if energy efficiency ratings were to be factored into lending criteria, and it is these types of initiatives that need to be considered as part of the solution. 

“If buyers can responsibly borrow enough to keep up with price inflation, rather than waiting potentially years longer to save for a deposit, it will give them a greater chance of finally getting onto the increasingly illusive property ladder.”

UK Finance senior economist Mohammad Jamei said looking ahead, housing market activity is likely to reflect economic conditions – a deterioration would likely dampen first-time buyer numbers and homeowners remortgaging – the factors that have supported lending recently.

emma.hughes@ft.com

Go to Source

COMMENTS