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

Double digit rise for mortgage lending in 2016

Written by: Christina Hoghton
Mortgage lending rose by a healthy 12% in 2016 compared to 2015 despite economic uncertainty over Brexit, according to the Council of Mortgage Lenders.

The mortgage trade body said that lending reached £20.4bn in December, bringing the estimated total for the year to £246bn, a 12% increase on 2015’s £220bn and the highest annual gross lending figure since 2008.

Mortgage lending for the fourth quarter of 2016 was an estimated £62bn. This is a 3% decrease on the third quarter and closely matches the 61.8bn lent in the fourth quarter of 2015.

Positive note

CML senior economist Mohammad Jamei said: “The UK housing market, much like the wider UK economy, ended 2016 on a generally positive note.

“Approvals for house purchase have recovered strongly of late, and this should feed through to lending figures in the early months of 2017. The current availability of mortgage credit is benign, and the real issue continues to be a dearth of properties on the market, which adds to the challenges facing would-be buyers.

“Uncertainty associated with political factors and prospective changes to the tax treatment of landlords will weigh on prospects for the year ahead.”

Henry Woodcock, principal mortgage consultant at IRESS, agreed: “Overall the market in 2017 is likely to be dampened by uncertainties around the economy and buy-to-let lending levels are expected to be lower as further tax changes take effect.”

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.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Read previous post:
Retirement income ‘playing catch up’ decade after financial crisis

People planning to retire this year expect to live on an average annual income of £18,100, which is less than...