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March Gross Mortgage Lending Up By 43% On February

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Wed 04 May 2016

March Gross Mortgage Lending Up By 43% On February

Thinking of using an estate agent like beercocks to find your next house? Then now could well be the time to start looking for a mortgage, as new research has revealed that gross mortgage lending for March was up by 43 per cent on the month before.

Figures from The Council of Mortgage Lenders (CML) has revealed that lending for the month peaked at £25.7 billion, increasing by 59 per cent on the same month in 2015. What’s more, lending for the first quarter of 2016 is expected to be around £62.1 billion, a rise of 39 per cent on the first quarter of last year.

Economist with the CML Mohammad Jamei commented on this “substantial” jump in lending, saying: “[It] was significantly influenced by a late surge of activity to beat the government’s stamp duty change on second properties, which came into effect at the start of April. The distortion caused by this stamp duty change appears to be larger than any previous stamp duty change we’ve seen.”

He went on to predict that there would be around 10,000 fewer mortgaged transactions every month during the second quarter of the year than would normally be the case, offsetting the activity seen last month.

In February, the CML revealed that the month saw a 21 per cent year-on-year increase in house purchase lending, with £8.7 billion borrowed for period. This was in fact the most borrowed for the month of February for house purchases since February 2007.