March Sees Rise In Gross Mortgage Lending
There has been an increase in gross residential mortgage lending in March 2017 to an estimated figure of £21.4 billion according to the Council of Mortgage Lenders (CML) when compared to the previous month when such lending reached £17.9 billion. This equates to a rise of 19% although in March 2016 the figure was much higher at £26.3 billion.
On a quarterly basis, the gross residential mortgage lending for the first three months of this year was estimated to be £59.1 billion with this being a fall of 6% when compared with the £63 billion advanced for the first three months of last year.
According to the CML, some £28.6 billion was advanced to buyers of homes in the first quarter of 2017 with this being made up of 156,000 mortgages. The figures fell by 7% and 5% respectively when compared with Q1 of 2016.
£12.3 billion was advanced to first time buyers with this being 10% more than the first quarter of last year. This was made up of 78,300 mortgages. This is pleasing to see as a bouyant first time buyer market is needed to help boost second time purchasers.
Remortgage business rose by 18% when compared with the first quarter of 2016 both in terms of the amount lent and the number of mortgages. Could this be due to their being a number of attractive remortgage packages being available?
There was a considerable drop in buy-to-let gross lending with the amount lent falling by 40% and the number of mortgages falling by 39% when compared with the first quarter of 2016.
When looking at some of the above figures it should be borne in mind that the changes made to stamp duty in the spring of 2016 will have had an impact. However, the above figures make for useful analysis and it will be interesting to see what happens in the second quarter of 2017 and in the months ahead. Here at Commercial Mortgage Link we will keep our readers updated periodically.