The UK-wide economic forecasting group EY ITEM Club has predicted that the market for mortgage lending is set to grow slowly but steadily throughout the remainder of this year and next.
It has stated that it expects the level of growth within this part of the mortgage sector to reach roughly 3.7% and to stay at that level for the rest of 2019 and the whole of the following year. Looking further ahead, the economic forecaster says that it expects mortgage lending growth levels to enjoy a slight increase to 3.8% the year after that, before hitting 4% by 2022.
EY is arguing that the economic uncertainty that the vote to leave the EU has created is a major reason why this market is not growing more rapidly, as it is making people wary of significant financial commitments. There is also an issue with the continued high price of housing in the UK that puts it outside the reach of many.
House prices in the UK have also been growing slowly, but during the first quarter of 2019, the cost of the average home in this country remained 4.7 times higher than the income of the average potential mortgage customer, with the gap between the two almost at a record level.
Despite the slow growth of the lending market, mortgage advisors who have done a CeMAP course will still be needed to help those who are trying to buy a home to find a mortgage that lets them get on the housing ladder.
