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Gross mortgage lending 10% stronger than a year ago

Published: 20 February 2012

Gross mortgage lending declined to an estimated £10.5 billion in January. Lending fell by 14% from £12.2 billion in December but was 10% higher than the total of £9.5 billion in January 2011, according to the Council of Mortgage Lenders.

Although a seasonal decline is expected, January was the sixth month in a row of higher year-on-year lending.

In today’s CML market commentary, CML chief economist Bob Pannell comments:

“Housing and mortgage market sentiment has improved a little over recent weeks.

“The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March.

“Should inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half of the year. This can only be good news for the housing market further down the track.”

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 94% 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 Regulated Mortgage Survey 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 lending press release and market commentary will be published on 20 March 2012.

 

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