CML reports 26% growth in Mortgage Lending

by Property 118

11:45 AM, 19th July 2013
About 5 years ago

CML reports 26% growth in Mortgage Lending

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CML reports 26% growth in Mortgage Lending

The Council of Mortgage Lenders CML reports that total gross mortgage lending increased to £15 billion in June, which is 2%  more than £14.7 billion in May this year and 26% higher than the total of £11.9 billion in June 2012.

This is the highest monthly figure for gross lending since October 2008.

Gross lending for the second quarter of 2013 was therefore an estimated £42 billion. This represents a 24% increase from the previous three months and is the highest quarterly estimate since Q4 2008.

CML chief economist Bob Pannell said:

“Improvements in the cost and availability of mortgage credit are underpinning a meaningful recovery in the housing market. In recent months, we have seen the strongest performance for mortgage lending since 2008.

“However, although the pace of first-time buyer activity is approaching a quarter of a million per annum, it is worth bearing in mind that this is still barely half of activity rates a decade earlier, and so far below what might be considered normal levels.”



Comments

Howard Reuben CeMap CeRER

15:55 PM, 19th July 2013
About 5 years ago

This is actually a mixed (good and not so good) news story.

Why?

Because even though it's great news this week that lending is becoming more popular again with banks, other news also published this week says "Experts warn that dwindling broker numbers could lead to thousands of “orphaned” clients being left without access to an adviser if gross lending increases as sharply as predicted."

(source: http://tiny.cc/HDCnews )

The same article states "The Association of Mortgage Intermediaries says the number of brokers has fallen from around 30,000 in 2006 to around 10,000 today"

In the latest census (2011 - http://tiny.cc/HDCstats ) there were over 26million households, and just 10,000 mortgage advisers!

Why should you be concerned? Well maybe you don't have to be, but e.g. we all moan about the NHS not having enough qualified and experienced doctors, we moan about not enough police on our streets and yet for our own 'financial' health and security, I believe that we also need enough qualified, professional and expert financial advisers too.

The credit crunch killed off a lot of financial intermediaries, in recent times banks have pulled all of their 'advisers' (salesman? - that's another story altogether) out of branches and and many older Advisers have retired early or changed careers due to the imposition of extra costs, qualifications and insufficient new enquiries coming through their doors.

So, the moral of this 'story' is; if you find a decent, honest, hardworking, qualified, experienced and professional mortgage adviser now - be nice to them! They have survived, they are still there to offer help and advice and, with the right whole of market Broker in sight, they can also give you access to products and services that you may not have been exposed to before.

And .... as the article above states, with 26% more lending going on, the lenders will have service problems as well (I have seen some building societies close shop at the mo so they can catch up on huge backlogs of applications), you need a Broker who knows the market, the underwriters and their processes.

Regards

grey haired broker! 🙂


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