Good news for house buyers as mortgage market becomes more “robust”
Improved mortgage lending expected to continue throughout 2013
January 22, 2013
The Council of Mortgage Lenders (CML) has revealed that mortgage lending increased by £2 billion during 2012 compared to the previous year. It estimated that lending in December reached £11.7 billion, taking the total for the year to £143 billion. Since the Bank of England introduced its Funding for Lending scheme in August banks have broadened the number and type of products available on the market.
The Funding for Lending scheme aims to increase the willingness of banks to lend to businesses and individuals by allowing banks to borrow up to £60 billion at cheap interest rates. So far only about £4 billion of this fund has been accessed and commentators are expecting the availability of mortgages to continue to improve as more of the fund is used. The CML estimates that mortgage lending will reach £156 billion over the course of 2013.
CML chief economist Bob Pannell said: “We are more positive about the UK housing market and wider economy than a year ago, despite economic headwinds and downside risks. House purchase activity was robust in the fourth quarter, on the back of better mortgage availability and pricing, and we expect this to continue over the coming months.”