Gross mortgage lending grows by 9% in July
Published: 20 August 2015
The Council of Mortgage Lenders estimates that gross mortgage lending reached £22 billion in July. This is 9% higher than June (£20.1 billion), 14% higher than July last year (£19.4 billion) and the highest monthly figure since gross lending reached £23.6 billion in July 2008.
Mohammad Jamei, CML economist, comments:
At £22 billion, our estimate of gross lending in July is the highest monthly total for seven years, but is in line with our expectation that lending would strengthen in the second half following subdued activity earlier in the year. We expect lending activity in the rest of the year to be underpinned by improving economic fundamentals, but kept in check as any upward pressure on house prices further stretches affordability for some buyers. Today’s data is in line with our forecast that gross lending will rise to £209 billion this year, 3% higher than in 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 11.1 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 August gross mortgage lending estimate will be published on Thursday 17 September 2015.
4. July market commentary can be viewed on the CML website under the News & Views - Analysis section