UK mortgage lending leaps to hit £22.1bn in June

Gross mortgage lending in the UK reached £22.1 billion in June, marking a 9 per cent jump from May’s lending total of £20.3 billion, and 3 per cent higher than the £21.5 billion lent in June last year.

The figures, calculated by UK Finance, push the gross mortgage lending for the second quarter of 2017 to an estimated £60.3 billion.

This is a 3 per cent increase on the first quarter of this year and a 6% increase on the £57.1 billion lent in the second quarter of 2016.

UK Finance Senior Economist Mohammad Jamei, said: “A period of belt-tightening now seems to be underway as inflation begins to erode consumer spending power, and consumer confidence weakens. Given that the economy and housing market are closely linked, this has contributed to the activity plateau since the start of the year.

“Looking ahead, housing market activity is likely to reflect economic conditions – a deterioration would likely dampen first-time buyer numbers and homeowners remortgaging – the factors that have supported lending recently.”

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