You are here: Home - Mortgages - Buy To Let - News -

Mortgage lending stable as market ‘ticks along’

0
Written by: Heather Greig-Smith
29/06/2017
Lending secured on homes was £3.5bn in May, slightly higher than its recent average of £3.2bn, according to the Bank of England’s latest money and credit statistics.

The figure was £600m higher than May 2016, when lending secured on homes was £2.9bn.

Mortgage approvals for house purchase remain broadly stable at 65,202, totalling £11.7bn, said the bank. This was the same value as in the previous month, which saw approvals of 65,051. In May 2016, approvals reached 66,722, however value was similar – £11.6bn.

Meanwhile approvals for remortgaging increased slightly to 42,955 with a value of £7.4bn, slightly down on the previous six-month average of £7.7bn. In May 2016 approvals for remortgaging were 42,855 – and £7.5bn.

Annual growth in consumer credit remained strong at 10.3% in May, below its November 2016 peak of 10.8%, but £1.7bn higher than in April.

Jonathan Harris, director of mortgage broker Anderson Harris, said the figures are a sign that the mortgage market is proving resilient. “While there is likely to be considerable uncertainty ahead as a result of the ongoing Brexit negotiations, the mortgage market appears to be shrugging these off and steadily ticking along,” he said.

“Approvals for house purchase are broadly stable although remortgaging continues to rise as borrowers take advantage of cheap fixed-rate mortgages in particular.

“However, with a reported third of all borrowers sat on their lender’s standard variable rate, there are still too many borrowers paying more than they need to. As speculation continues regarding the possibility of an interest rate rise, it may be that more borrowers are persuaded to take the plunge and secure a cheap deal before they miss out.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added that the figures tally with other reports of the market being fairly stable.

“However, we would have hoped for higher numbers compared with this time last year, considering that the market then was still suffering following the introduction of the Stamp Duty surcharge,” he said.

“Over the next few months, we expect the situation to remain fairly similar as buyers and sellers come to terms with the ‘new normal’ – longer transaction times and softening prices underpinned by a shortage of supply and insufficient housebuilding.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2286301-carney-at-the-old-lady
Currency markets buoyed amid interest rate rise speculation

The suggestion by the governor of the Bank of England that a change in monetary stimulus may be needed has...

Close