Gross mortgage lending increases 37% year-on-year
Published: 17 April 2014
Gross mortgage lending was an estimated £15.4 billion in March, according to the Council of Mortgage Lenders. This is 4% higher than February’s gross lending total and 33% higher than March last year (£11.6 billion).
Gross mortgage lending for the first quarter of this year was therefore an estimated £46.3 billion. This represents a 10% decrease from the last three months of 2013, but a 37% increase on the first quarter of 2013 (£33.8 billion).
Commenting on market conditions in this month’s Market Commentary, CML chief economist Bob Pannell observes:
"Alongside benign developments in the wider UK economy and the labour market, housing market sentiment continues to strengthen.
"There are currently no signs of significant market disruption, arising from the imminent application of new lending rules associated with the Mortgage Market Review. While some mortgage lending indicators have eased back gently, this is from the very high levels of recent months.
"The Financial Policy Committee continues to be vigilant to housing market developments, and to remind the market of its ability to act before problems to financial stability set in."
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 Wednesday 21 May 2014.