Mortgage lending eases off as buyers’ frenzy draws to a close
The boom in mortgage lending over 2013 and 2014 came to an end by the final months of last year, industry data showed yesterday.
Last year saw a total of 676,900 home-owner purchase loans, up 11 per cent on the year and the highest number since 2007.
By value, they amounted to £112.7bn, a rise of 19 per cent on the year, according to the Council of Mortgage Lenders (CML).
However, December saw only 55,600 loans, a fall of five per cent on the year. Despite prices rising nationally, the value of loans also fell by one per cent on the year.
Jeremy Duncombe from the Legal and General Mortgage Club predicts a resurgence in lending this year.
“As well as house price growth, other factors such as new entrants to the lending market, a low interest rate environment leading to excellent remortgage opportunities, low levels of inflation and the changes to stamp duty rules should all act as a strong tail wind for lenders and encourage more lending,” he said.