Mortgage lending in 2016 was fairly resilient but what next?

Enable’s IFA’s in Bishop’s Stortford know that 2016 was weighed down by uncertainty but towards the end of the year mortgage lending increased and even though the outlook for lending to home buyers is less bullish at the moment than it was a year ago, according to the latest report from the Council of Mortgage Lenders (CML,) the market is still proving to be resilient.

Paul Smee, director general of the CML said ‘November lending reflected stable market conditions. Overall, 2016 did not match recent years in terms of house purchase lending growth, but lending remained resilient through regulatory and political change and aspirations for home ownership remain strong in the UK,’  In the report it was recorded that overall home owners borrowed £11 billion in November 2016, up 5% month on month and 2% year on year. A breakdown of the figures indicates that first time buyers borrowed £4.7 billion, up 4% on October and 9% on November last year while home movers borrowed £6.3 billion, up 7% on a month ago but down 5% compared to a year ago.  Alongside this remortgage activity reached £5.8 billion, down 5% on October but up 14% compared to a year ago while landlords borrowed £3.2 billion, up 10% month on month but down 9% year on year.

‘Our forecasts for 2017 may be less bullish than a year ago, as economic uncertainty weighs on the market, but we still predict 1.2 million transactions and a slight increase in gross lending to £248 billion,’ said Smee. Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), agreed that the market is showing signs of stability in the face of wider uncertainty but there will be winners and losers. If you want to make sure you have the best mortgage in place for you Enable’s experienced IFA’s are here to help.

http://www.propertywire.com/news/uk/home-lending-uk-remained-resilient-2016-outlook-2017-less-bullish/


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