Published: 19 April 2013
The Council of Mortgage Lenders estimates that total gross mortgage lending increased to £11.6 billion in March. This is 9% higher than February’s gross lending figure of £10.6 billion but 8% lower than £12.6 billion in March 2012. However, this was just before the first-time buyer stamp duty holiday expired, distorting meaningful comparison.
Gross lending for the first quarter of 2013 was therefore an estimated £33.8 billion. This represents a 9% drop from the last three months of 2012 but matches the gross mortgage lending total for the first quarter of 2012.
Commenting on market conditions in this month's Market Commentary, CML chief economist Bob Pannell observes:
"Conditions in the housing and mortgage markets continue to show signs of improving. The improvement in funding markets over the past year, reinforced by the incremental benefits of the Funding for Lending Scheme, has been the key catalyst behind stronger housing activity.
"The Help to Buy mortgage guarantee scheme – while still embryonic as yet – holds significant firepower, and has the potential to increase activity from 2014."
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 11.3 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 21 May 2013.