UK Finance estimates that gross mortgage lending reached £20.3 billion in May and rose 9% higher in June to £22.1 billion.

New trade association
Formed on 1 July 2017, UK Finance is a new trade association and represents the finance and banking industry operating in the UK. Representing over 300 firms in the UK providing credit, banking, markets and payment-related services. This new organisation brings together activities previously carried out by the British Bankers’ Association, the Asset Based Finance Association, the Council of Mortgage Lenders, Payments UK, UK Cards Association and the Financial Fraud Action UK.

Back to back
June 2017’s figures represents a rise of 3% for the same time last year. Adding this figure to the second quarter of 2017 for gross mortgage lending gives an estimated figure of £60.3 billion. Back to back with second quarter of last year, this represents a 6% increase on the £57.1 billion lent in 2016.

UK Finance Senior Economist Mohammad Jamei commenting on market conditions 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.”