You are here: Home -

Mortgage lending boost in July

Written by:
Lending last month was higher than the average level seen this year
Mortgage lending boost in July

Mortgage lending in July is estimated at £23bn, said UK Finance, above the average lending figures seen over the past year.

First-time buyer and remortgage borrowing from homeowners has boosted lending for some time, said the trade body, but it predicted the pace of growth will slow, because of a potentially challenging economic outlook.

Eric Leenders, head of personal at UK Finance, said: “Steady levels of mortgage activity seen through the first half of the year continued into July. First-time buyer numbers continue to be strong, helped in part by government schemes. But that has been offset by home movers, where a shortage of homes on the market is limiting their activity.”

Flat housing market

Despite the July rise, housing market activity has been flat since the start of 2017, with lending and transactions both in line with 12 month averages.

UK Finance noted that economic growth in the first half of 2017 has been slower compared with the average rate during the second half of last year. This is expected to continue over the short-term and, because the economy and the housing market are closely linked, it suggested this could cause a slowdown in the housing market.

The trade body admitted that ‘if economic conditions soften further, then a slowdown in activity would be very likely’.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Comments are closed.

Save money now!

See how much you could potentially save by remortgaging to a different product

Your Mortgage Guides

Your Mortgage Award Winners 2017-2018

Download our guide to the best mortgage lenders in the UK

Read More >

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property
Read previous post:
Bad news for tenants – rents stay high in July

Rents stayed high in July, according to a survey of letting agents by ARLA Propertymark (formerly the Association of Residential...