February mortgage lending was 30% higher than the same month last year on a gross basis, Council of Mortgage Lenders figures have found.
February mortgage lending was 30% higher than the same month last year on a gross basis, Council of Mortgage Lenders figures have found.
Lending actually fell by 5% from January to stand at £17.6bn last month, but it was still up from £13.6bn recorded in February last year.
Mohammad Jamei, CML economist, said: “The recovery is being underpinned by market fundamentals in the UK, as wages grow and unemployment falls, helped by government schemes and competitive mortgage deals.
“But we think it unlikely that there will be any significant acceleration in lending. While there may be a slight current boost to lending as some transactions seek to complete before the 1 April tax changes in the buy-to-let-sector, this is likely to be followed by a slight fall in activity.
“Affordability pressures continue to weigh on activity, as does the low number of properties coming on the market, though this has been improving very recently.”
Andy Knee, chief executive of LMS, said: “All factors are working in the market’s favour. Despite a delay in the base rate rise, the remortgage market in particular is likely to continue unabated, with homeowners sitting on record housing equity and capitalising on the hugely competitive rates currently available.
“Mark Carney has recently stepped in to call the EU exit a ‘domestic risk’ to overall financial stability.
“Whether or not this will be the case will unfold in the next few months but for now it appears the mortgage market remains – for the meantime – untethered by any Brexit speculation.”
