Rise In Gross Residential Mortgage Lending
The Council of Mortgage Lenders (CML) regularly produces data about the amount that is lent by way of residential mortgages. It has recently published statistics showing that there has been an increase in the amount advanced last month in comparison to 12 month’s previously.
For the month of January 2016, it estimated that gross mortgage lending was £17.9 billion. This is a big increase when compared with January 2015 when it was estimated that £14.8 billion was advanced to customers. This is in fact an increase of 21%. Apparently, this is the most that has been lent for the month of January since going back to January 2008 when £25.2 billion was advanced.
It is interesting that January’s figure is actually lower than the amount lent in December 2015 when £19.8 billion was advanced. Perhaps some people may have expected to see the amount advanced leading up to Christmas to have been lower but this was not the case.
Members of the Council of Mortgage Lenders that includes the likes of building societies and banks arrange about 95% of UK residential mortgages.
There are no doubt a number of reasons why this year has started off well in terms of mortgages. For instance, people may be feeling more secure in their jobs and there is support from the Government in trying to get more people onto the home ownership marketplace. Another factor may well be that there is so much competition amongst mortgage lenders that many have numerous schemes available.
Let us not also forget that interest rates have been low for some time and the prospect of interest rates rising this year appears to be less likely to be going to happen according to press comment although you can never be certain as to what is going to happen in this respect. We will continue to keep you updated about gross mortgage lending data throughout the year.