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January gross mortgage lending up 33% year-on-year

20 Feb 14

January gross mortgage lending up 33% year-on-year

Gross mortgage lending was an estimated £15.5 billion in January, according to the Council of Mortgage Lenders. This is down 8% compared to the gross lending total of December 2013; however, it is a third higher than January 2013 (£11.6 billion).

Commenting on market conditions in this month's Market Commentary, CML chief economist Bob Pannell observes:

"Housing market indicators in the UK continue to be positive, although seasonal factors are likely to have affected activity levels. Monthly approvals for house purchase averaged 70,000 in the final quarter of 2013, the strongest for six years.

“The Bank of England envisages that approvals may climb to 90,000 a month in the second and third quarters of 2014. This would seem to imply property transactions running at an annualised rate of one and a half million or so. We think this may be over-optimistic given the growing anecdotal reports of a shortage of prospective sellers."

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.2 million mortgages in the UK, with loans worth over £1.2 trillion.

2. The Council of Mortgage Lenders does not publish statistics for mortgage approvals. The data in our monthly mortgage lending press release and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.

3. Next month's gross mortgage lending press release and market commentary will be published on Thursday 20 March 2014.

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