Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“The fact that mortgage lending in April was at its highest level in six years should be taken as a positive given the severe slump in the intervening years. Average lending figures are significantly higher than this time last year, although we’re likely to see this trend scaled back in the months ahead. MMR certainly had a cooling effect on application volumes during April and this may impact the extent of gross lending in the next few months.
“Talk of action from the Bank of England is gathering pace, but having taken matters into its own hands, it is encouraging that Lloyds Banking Group is still willing to lend at higher loan to values (LTVs) providing its tightened criteria are met.
“The lopsided London property market is being fuelled by factors outside of the mortgage market, but it is important to have measures in place to ensure we aren’t carried along with the tide. MMR is designed to do exactly that, but if the largest lender is now taking extra measures, others may consider their position in the weeks ahead.”