Home.co.uk
Home.co.uk

News: UK mortgage lending continues to climb

Thu, 03 Oct 13

Lending from mutuals climbed 32 per cent in August 2013, as building societies continue to play “an active role” in the market. Gross lending hit £4 billion in August 2013, up from £3 billion in the previous year, while the gross lending through the first eight months of 2013 is £26.1 billion, 30 per cent up from the same period last year.

One in three new loans went to first time buyers, as consumer confidence and accessibility improves. Nonetheless, the market recovery is still underway, with lending well below the historic average.

Adrian Coles, Director-General of the Building Societies Association, commented:  “Sentiment can be fragile and it is vital that unexpected surprises and overheated rhetoric are avoided.  Viewing today’s market in context, it is certainly getting better, however, the number of loans approved for house purchase in the past three months ran at around 60,000 a month, less than two thirds of the historic average.      

He added: "There is no doubt that we need more homes to be built. We welcome the focus from all political parties on the imperative to address this and other housing issues. This attention has been evident both from the platform speeches and plethora of housing related fringe meetings at party conferences.  This is a debate in which the BSA and its members will remain active as policies develop.  Following David Cameron’s announcement over the weekend we may see some lenders start to take Help to Buy: mortgage guarantee applications."

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