As part of any financial plan it is important to include the roof over your head. Overall, the Council of Mortgage Lenders estimates that gross mortgage lending reached £20.1 billion in May, up 12% increase on both April and on May last year.
They believe it has been driven mainly by remortgaging and first time buyers. It also found that home lending in the UK increased month on month and year on year in May. But the CML’s buy to let forecast for 2017 and 2018 has been revised down from previous expectations at the end of last year, this is probably to reflect the tax and prudential burdens in the housing and mortgage markets.
The CML director general Paul Smee said ‘Remortgage activity and first time buyers continue to drive lending this year. Looking ahead, we expect to see this trend continue, but not as strongly, as the factors supporting lending are blunted by less favourable economic conditions.’ The CML now expects buy to let lending of £35 billion in 2017 and £33 billion in 2018, a decrease from £38 billion in each year, forecast in December last year.
Jeremy Duncombe, director of the Legal & General Mortgage Club, thinks that the rise in mortgage lending is more a result of borrowers having to borrow more to get on the increasingly expensive property ladder. ‘However, in the current low interest rate environment borrowing continues to remain attractive to many, particularly to first time buyers who help keep the market buoyant. There are currently a lot of products available on the market,’ he says.
Your home could be at risk if you do not keep up the repayments.
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