Borrowers are back: mortgage lending up 21% year on year
The Council of Mortgage Lenders has estimated that gross mortgage lending reached £17.9bn in January.
This is 9% lower than December’s lending total of £19.8bn, but a massive 21% higher than the £14.8bn lent in January last year.
It is also the highest lending total for a January since 2008 (£25.2bn).
CML economist Mohammad Jamei said: “Lending started the year on a positive note. Our monthly estimate is 21% higher than a year ago, with the current growth rate in lending similar to the closing months of 2015.
“UK market fundamentals are helping to underpin this recovery, with real wage growth, an improving labour market, competitive mortgage deals, and government schemes all supporting household demand.
“We still only see limited upside potential going forwards, as the number of properties for sale on the market remains low and affordability pressures weigh on activity. Upcoming tax changes in the buy-to-let sector are adding an element of uncertainty to the market.”