Gross Mortgage Lending Increases in 2018
According to data published by the Building Societies Association (BSA), 2018 was a good year for residential mortgage lending here in the UK. This news will no doubt be welcomed by both the building societies and their customers and let us hope that it continues in 2019.
In 2018, the amount of gross lending amounted to £68.9 billion. This is an increase of £4.8 billion when compared to the previous year when gross residential mortgage lending came to £64.1 billion. This equates to a rise of 7% which is a significant figure.
In 2018, net residential mortgage lending amounted to £17.9 billion. This is an increase of £1.9 billion when compared to the previous year when net lending amounted to £16 billion. This equates to a rise of 12% which is a large increase.
Another positive set of figures relates to the number of new mortgages that were approved. In 2018, the number of new mortgages that were agreed amounted to 476,803 with this being a rise of 8% when compared with the figures for 2017. This meant that 31% of mortgages that were agreed in 2018 related to new mortgages – again a significant number.
It is interesting that in the region of 1 in every 3 mortgages were for applications that were submitted and approved for the first time buyer market.
It is good to see that the residential mortgage marketplace is doing well at the moment and that there is quite a lot of activity within the first time buyer sector. After all, it is this sector that tends to impact on the rest of the residential mortgage marketplace as we need such purchasers coming along to then enable people looking to move onto their second property to get back on the property moving ladder.
We will continue to provide periodic updates about the residential mortgage sector to our readers during 2019.