Mortgage lending in the UK grows year on year, shows CML data

 
Mortgage lending in the UK grows year on year, shows CML data

Strong fundamentals in the UK that have propped up the mortgage market for some time, are continuing to push lending figures ever high on an annual basis, despite a slight fall being recorded in the last month, it has been reported. 

In the latest data released by the Council of Mortgage Lenders (CML), it was shown that the £19.9 billion total approved in November of this year represented a slight fall on October's lending figures. The fall from the £22.9 billion recorded in October represented a monthly decline of nine per cent in lending. 

However, the CML said that this was a time of year when falls in lending are to be expected. After all, the period around October tends to be the fastest month of the year for house sales in the UK, so a fall in November will always be fully expected. 

The important fact highlighted in the data was just how impressively lending has grown in 2015 when compared to last year. At present, lending is 23 per cent ahead of the £16.1 billion that was recorded in November of last year. 

CML economist Mohammad Jamei pointed out that lending is set to finish the year stronger than it started, as he stated that the summer months had really pushed forward the market and helped to see it recover from a slower start to the year. This, he added, was buoyed by the fundamental factors in play. 

"As we’ve said for the best part of 2015, lending continues to be supported by strong fundamentals, which are low inflation, strong wage growth, an improving labour market and competitive mortgage deals," he said. 

Looking forward, Mr Jamei said that the year as a whole should even be faster than the CML expected to see. It has previously predicted that there would be total lending of £209 billion for 2015, but with one month left to record, it is now forecasting substantially higher lending of £214 billion.