Gross Mortgage Lending Statistics Look Positive
The Building Societies Association (BSA) has recently published some data relating to residential mortgages here in the UK. They make for interesting reading and we highlight some of the data.
In 2017, the total gross lending figure was £257,227 million with this being an increase when comparing the figures for 2016 when the total gross lending figure was £246,566 million for the year. These figures were based upon the total gross lending for residential properties made by monetary financial institutions such as banks and building societies, other specialist lenders and other lenders.
In January of 2018, the total gross lending for the month stood at £21,982 million. Of this figure, £10,610 million was for house purchase, £10,435 was for remortgaging and £937 million related to “Other”.
In 2017, the total net lending figure was £43,658 million across monetary financial institutions including banks and building societies plus other specialist lenders and other lenders. In the previous year the total amount of net lending was £40.502 million.
In January of 2018, the total net lending for the month amounted to £2,546 million.
A few months ago we did have the first increase in base rate for many years and that has resulted in many banks and building societies increasing their rates. For those borrowers who are tied into a fixed rate prior to the increase in the base rate they will not have had an increase in the monthly mortgage repayments. However, for those on a variable interest rate they are likely to have seen their monthly repayments go up.
It will be interesting to monitor what happens to the residential mortgage lending figures in the coming months. Are we likely to see a fall in the number of mortgage completions taking place as a result of the increase in the interest rate some months ago? If we do then, presumably, we will see a fall in the number of properties being sold and bought.