According to the CML, month on month gross lending increased by 8% in April, up to a total of £16.6bn, the highest level for any April since 2008.
The data, which now takes into account mortgages that have been advanced, rather than just approved, is arguably the strongest evidence yet that the appetite for borrowing is reaching a peak. This news has fuelled concern that rising demand and increased mortgage availability will push house prices up further. As a result a number of industry experts and consumer groups have called for measures to cool the market. Indeed, Lloyds Banking Group recently stated that loans worth more than ½ million would be limited to four times borrowers’ income.
However, despite this concern it is important we don’t lose sight of the figures. Total mortgage lending is well below pre-crisis levels and in April only 94,960 homes were sold, compared with 126,450 sold in April 2007.
For consumers this recovery in mortgage lending can be seen as good news. It appears that those wishing to get a foot on the ladder, or climb the next rung have more access to sensible affordable loans and this will ultimately help them on the road to owning their own dream home.
For information and advice on mortgage finance speak to one of our experts today.