Mortgage lending reaches new highs

Mortgage lending is reaching new highs in the UK, according to the latest data from the Council of Mortgage Lenders (CML).

In March, gross mortgage lending hit a record of £31.3 billion, the data showed.

This figure was up from £25.5 billion in February - a 22 per cent leap. It is also ten per cent higher than the £28.3 billion of lending reached in March last year.

It is thought that the figures will bolster the already robust buy-to-let mortgage market.

Commenting on today's data, CML director-general Michael Coogan said: "This is the highest-ever March lending figure. It is clear that many borrowers are taking sensible steps to shelter against higher mortgage costs."

Although Mr Coogan expressed uncertainty over how strong mortgage lending will be as possible further higher interest rates hit, he nevertheless added that mortgage lending "is expected to reach a record £360 billion this year".

Economist Joshua Miller from Royal Institution of Chartered Surveyors commented that house price inflation can be expected to slow as potential interest rate rises impact on demand.

There are 11.6 million mortgages in the UK, with loans worth over £1 trillion.

Landlord Mortgages “We are expecting the Land Registry House Price Index, Nationwide House Price Index and the Halifax House Price Index to show signs of a property market slow down in the coming months. Whilst the Buy To Let Mortgage market has been very strong in recent months it is likely to slow as the amount that can be loaned reduces (rental income as a % of mortgage interest). With reduced loans comes higher deposits and therefore a landlord will run out of money quicker.”

LettingAgent.com “Tenant demand is very high so we are expecting rents to climb sharply over the coming months.”

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