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

Highest May mortgage lending in 8 years but housing market uncertainty ahead

0
Written by: Christina Hoghton
27/06/2016
Mortgage lending has risen for the month of May, but the Council of Mortgage Lenders said the results of the EU referendum will weigh on housing market activity over the next few months.

Mortgage lending reached an estimated £18.2bn in May, according to The Council of Mortgage Lenders (CML) which is stronger than expected.

This is a slight 4% rise on last month, and 14% higher than a year ago (May 2015 – £16bn). It’s also the highest level of lending in May since 2008 (£23.7bn).

But CML’s senior economist Mohammad Jamei warned of uncertainty ahead, following last week’s EU Referendum result.

He said: “Looking ahead, there is likely to be considerable uncertainty as a result of the EU referendum decision.

“We expect this to affect sentiment and reduce activity below levels that would otherwise be expected in the near term, as both buyers and sellers adopt a wait-and-see attitude until the dust begins to settle.

“Market fundamentals underpinning house prices still look sound, and we do not expect significant house price falls, especially given the current supply demand imbalance.”

Jamei added that lending over the next few months is likely to be driven by remortgage customers, as house purchase activity takes a back seat.

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.

Coronavirus and your finances: what help can you get?

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

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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...

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

  • Cost of taking a mortgage holiday revealed: The average cost of a 3 month #mortgagepaymentholiday is £665.08, and… https://t.co/gWHI7Lo8zl
  • RT @BlackstockPR: "The government needs to grasp that mounting rent arrears are a serious economic issue that will impact many buy-to-let l…
  • "The government needs to grasp that mounting rent arrears are a serious economic issue that will impact many buy-to… https://t.co/KXusvi1RvR

Read previous post:
‘Punishment Budget’ cancelled as Osborne seeks to reassure public

George Osborne today announced there will be no emergency Budget following the shock Brexit result and reassured the public that...

Close