December gross mortgage lending up 49% year-on-year
Published: 21 January 2014
Gross mortgage lending was an estimated £17 billion in December, according to the Council of Mortgage Lenders. This matches November’s gross lending total, however, it is 49% higher than December 2012 (£11.4 billion) and the highest total for a December since 2007. This brings the estimated total for the year to £177 billion, up from £143 billion in 2012.
Gross lending for the fourth quarter of 2013 was therefore an estimated £52 billion. This represents a 5% increase on the third quarter of last year and a 38% increase on the fourth quarter of 2012 (£37 billion). This is the highest lending amount by quarter since quarter three of 2008.
Commenting on market conditions in this month's Market Commentary, CML chief economist Bob Pannell observes:
"Short-term growth prospects for the housing market and the wider economy look very positive. Mortgage lending was stronger than we expected in the closing months of 2013, but lenders expect little if any boost to borrower demand this quarter.
"While some of these gains reflect government schemes, the rationale for the positive narrative is a much broader one, reflecting such factors as the improving economy and jobs market, consumer confidence and competitive mortgage deals".
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 at 9.30am on Thursday 20 February 2014.