UK Finance estimates that gross mortgage
lending reached £22.1 billion in June. This is 9% higher
than May’s lending total of £20.3 billion, and 3% higher than the
£21.5 billion lent in June last year.
Gross mortgage lending for the second quarter of 2017 was
therefore an estimated £60.3 billion. This is a 3% increase on
the first quarter of this year and a 6% increase on the £57.1
billion lent in the second quarter of 2016.
Commenting on market conditions in this month’s mortgage market
commentary, UK Finance Senior Economist Mohammad Jamei said:
“A period of belt-tightening now seems to be underway as
inflation begins to erode consumer spending power, and consumer
confidence weakens. Given that the economy and housing
market are closely linked, this has contributed
to the activity plateau since the start of the year.
“Looking ahead, housing market activity is likely to
reflect economic conditions – a deterioration
would likely dampen first-time buyer numbers and
homeowners remortgaging – the factors that have supported lending
recently.”
Notes to Editor
1. UK Finance is a new trade association which was formed
on 1 July 2017 to represent the finance and banking industry
operating in the UK. It represents around 300 firms in the UK
providing credit, banking, markets and payment-related services.
The new organisation brings together activities previously
carried out by the Asset Based Finance Association, the British
Bankers’ Association, the Council of Mortgage Lenders, Financial
Fraud Action UK, Payments UK and the UK Cards Association.
2. This is the last distinct gross mortgage lending press release
to be published. Future gross mortgage lending estimates will
continue to be published as part of the monthly mortgage market
commentary. The next mortgage market commentary will be published
on Thursday 24 August 2017.
3. This month's full mortgage market
commentary can be viewed on the UK Finance website.
