Gross mortgage lending £25.7 billion in March
Published: 21 April 2016
The Council of Mortgage Lenders estimates that gross mortgage lending reached £25.7 billion in March, driven by a surge to beat the second property stamp duty surcharge deadline.
Lending was 43% higher than February (£18 billion), and 59% higher than March 2015 (£16.2 billion), and the highest March figure since 2007 when gross lending reached £30.9 billion.
Gross mortgage lending for the first quarter of this year was therefore an estimated £62.1 billion. This is the same level as in the previous quarter, but 39% higher than the first three months of 2015.
Commenting on market conditions in this month’s market commentary, CML economist Mohammad Jamei said:
Against a backdrop of a recovering market, the substantial jump in lending in March was significantly influenced by a late surge of activity to beat the government’s stamp duty change on second properties, which came into effect at the start of April. The distortion caused by this stamp duty change appears to be larger than any previous stamp duty change we’ve seen.
As a result, we expect there will be about 10,000 fewer mortgaged transactions each month in the second quarter of 2016 than would otherwise have been the case, offsetting the increase in activity seen in March.
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 11.1 million mortgages in the UK, with loans worth over £1.3 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. The CML's April gross mortgage lending estimate will be published on Thursday 19 May 2016.
4. This month's market commentary can be viewed on the CML website under the News & Views - Analysis section.