Gross mortgage lending £22.1 billion in June
Published: 20 July 2017
UK Finance estimates that gross mortgage lending reached £22.1 billion in June. This is 9% higher than May’s lending total of £20.3 billion, and 3% higher than the £21.5 billion lent in June last year.
Gross mortgage lending for the second quarter of 2017 was therefore an estimated £60.3 billion. This is a 3% increase on the first quarter of this year and a 6% increase on the £57.1 billion lent in the second quarter of 2016.
Commenting on market conditions in this month’s mortgage market commentary UK Finance Senior Economist Mohammad Jamei said:
A period of belt-tightening now seems to be underway as inflation begins to erode consumer spending power, and consumer confidence weakens. Given that the economy and housing market are closely linked, this has contributed to the activity plateau since the start of the year.
Looking ahead, housing market activity is likely to reflect economic conditions – a deterioration would likely dampen first-time buyer numbers and homeowners remortgaging – the factors that have supported lending recently.
Notes to editors
1. UK Finance is a new trade association which was formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
2. This is the last distinct gross mortgage lending press release to be published. Future gross mortgage lending estimates will continue to be published as part of the monthly mortgage market commentary. The next mortgage market commentary will be published on Thursday 24 August 2017.
3. This month's full mortgage market commentary can be viewed on the UK Finance website.