26 Jan

CML: Mortgage lending on the up

CML: Mortgage lending on the up

Total mortgage lending has risen by eight per cent over the past 12 months, reveals the latest data.

Information from the Council of Mortgage Lenders (CML) shows the total gross mortgage lending for 2015 was £220.3 billion compared to £203.3 billion in the previous year.

The final three months of 2015 saw a 23 per cent increase compared to the previous quarter and meant the year provided the highest level of gross lending since 2008.

"Lending ended the year stronger than it started, with our estimate of nearly £20 billion lent in December. This brings total lending to just over £220 billion for 2015 as a whole, and slightly higher than we had anticipated," explained CML economist Mohammad Jamei.

He added: "The low inflation environment, along with real wage growth, an improving labour market and competitive mortgage deals have all helped to underpin demand. Having said this, the upside potential looks limited over the near term, as the supply of existing and new properties on the market remains weak, and affordability pressures weigh on activity."

However, some experts remain cautions as ahead of tax changes that will be introduced in April and could impact on the buy-to-let sector.

Under the new changes, a buy-to-let property purchased for £150,000 will attract a £5,000 stamp duty tax liability, compared to £500 under the previous arrangement - a tenfold increase.ADNFCR-1222-ID-801810927-ADNFCR

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