Gross mortgage lending increases 16 per cent year-on-year

CMLThe Council of Mortgage Lenders estimates that gross mortgage lending reached £18.5 billion in April.

The total is 29 per cent lower than March’s lending total of £26.2 billion, but 16 per cent higher than the £16 billion lent in April last year.

It is is the highest lending total for an April since 2008 (£25.3 billion).

Commenting on market conditions in the CML’s latest market commentary, CML economist Mohammad Jamei said: “As we move past the stamp duty change that came into effect at the start of April, we expect to see a quieter second quarter, as some transactions that were due to take place were brought forward to the first quarter of this year. This is likely to mean that over the next few months buy-to-let takes a back seat as lending is driven by first-time buyers, movers and remortgage customers.

“The underlying picture still shows signs of growth, as the market remains underpinned by strong fundamentals such as increasing wages and rising employment. But it is possible that the uncertainty around the upcoming EU referendum in June will weigh on activity in the upcoming months.”

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