Lending forecasts provided by the Council of Mortgage Lenders (CML) have increased for 2015 and also next year.
According to building societies and banks in the UK, lending has been much stronger this year than previously thought, with £214bn of mortgages being given out during 2015. The CML stated that cheap mortgage products and a favourable economy had created stronger lending than at the start of this year. Around £14.7bn of mortgages were approved in January 2015, while during November it is estimated that lending rose to £19.9bn.
In November this year, lending had increased by 23% in comparison to the corresponding period last year. Although CML had previously issued a forecast which predicted lending would be £209bn for 2015, that forecast has now been changed to £214bn for the year. CML expects that figure to increase again next year, to £237bn. A prediction for 2017 saw lending increase to £261bn.
Mohammad Jamei, economist for CML, said:
“As we’ve said for the best part of 2015, lending continues to be supported by strong fundamentals, which are low inflation, strong wage growth, an improving labour market and competitive mortgage deals.”
However, CML believes that the number of house sales will be controlled by the continuing housing shortage and the lack of affordable housing. Although Help to Buy and other schemes have been introduced, it is taking time for the effects to show.
To guarantee that you only take on a mortgage which is within your budget, consult with a mortgage adviser who has undertaken CeMAP training.
