You are here: Home - Mortgages - First Time Buyer - News -

Mortgage lending remains stable following launch of tougher ‘stress tests’

Written by:
Mortgage lending held steady in the month following the introduction of tougher affordability criteria, figures from the Council of Mortgage Lenders have shown.

The new Mortgage Market Review (MMR) regulations hit the market on 26 April, sparking fears of a slowdown from lenders, but mortgage volumes remained flat during May.

Gross mortgage lending reached £16.5bn in May, idenitical to the level recorded during the previous month.

May’s total also compares favourably to the same month last year, when £14.8bn of lending was completed.

CML chief economist Bob Pannell said: “Implementation of the new regulatory regime is likely to have disrupted the normal patterns of activity, creating statistical “fog” around the published figures. As this lifts over the coming months, a clearer picture as to any lasting impact of the MMR rules on lending activity should emerge.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said it would take until later in the year before a true assessment of the MMR’s impact could be made.

“It is still not clear how much of an impact the Mortgage Market Review rules are having on the market and how much of the slowdown is to do with buyers questioning the prices some vendors are demanding.”

Related Posts

Tag Box

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.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week