Property Law at Rocket Lawyer

Gross mortgage lending holds steady

Gross mortgage was up 28 per cent in August compared to the same month last year, the latest figures have shown.

According to the Council of Mortgage Lenders, gross lending was an estimated £16.6 billion in August – almost identical to the figure for July which was £16.7 billion. Last August, the figure was £13 billion meaning last month saw a 28 per cent increase over the 12 month period.

Bob Pannell, the CML’s chief economist insisted it was good to see the lending figure hold steady. He said: “We are beginning to experience a healthy and broad-based recovery in mortgage lending activity. We attribute much of this turnaround to the improvement in funding markets generally, and also to the Funding for Lending Scheme. The Bank of England’s approvals data suggests that the positive tone for house purchase and remortgage lending will continue.”

“One tell-tale sign of a recovering housing market is the re-emergence of concerns about a housing boom… But, as we have argued elsewhere, the housing market recovery to date appears fairly unexceptional in nature, at least compared with that of the early-mid 1990s.”

Total home-owner house purchase loans continued to show growth with 57,400 house purchase loans advanced in July. This represented an increase of nine per cent on June and up by 21 percent on July last year.

Lending to first-time buyers continued to increase, with the number of loans advanced increasing by five per cent compared to June. In July, 25,300 loans were advanced to first-time buyers, worth £3.5bn. By value, first-time buyer lending was six per cent up on June and 46 per cent up on July last year.

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Harvey Harding

Harvey has over 10 years practical legal experience within private practice and is responsible for PM Law’s Property, Wills, Trust and Probate, Employment and Civil Litigation teams. Harvey is a practising solicitor and is committed to ensuring clients receive a seamless, straight-forward, quality service.