Mortgage Advice Bureau comments on CML gross mortgage lending

Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:

 “The latest data from the CML suggests that housing activity is back on track. The fall in February was not unexpected given the seasonal slowdown, but it is encouraging to see that lending has risen 21% over the month to stand 7% higher than in March 2014, particularly as the first half of 2014 was exceptionally strong relative to the previous two to three years.”

“There has been chatter in the market about the upcoming election putting the brakes on housing activity, but there is still appetite in the market for lending, and consumer demand has also held strong. Mortgage rates continue to fall, and the latest sub-2% five year fixed mortgage suggests even better deals are yet to come.”

“Recent figures from HMRC show that the number of housing transactions rose above 100,000 for the first time in four months in March: this should have a knock-on effect on mortgage completions, leading to further growth. However, with housebuilding levels still trailing behind consumer demand, long-term growth could be stunted if this imbalance is not addressed.”

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