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TODAY'S OTHER NEWS

Brokers enjoy best month since 2008 financial crisis

June was the strongest month for broker mortgage lending since the financial crisis in 2008.

Total lending soared 26.5% year-on-year to hit £16.4 billion, according to new analysis of the intermediary marketplace by Equifax Touchstone.

Buy-to-let lending led the surge, rising 37.9% year-on-year to £3.8 billion.

Residential mortgage lending rose 23.5% on June last year to £12.6 billion.

Month-on-month lending was also up significantly, as uncertainty over the general election cleared.

Residential lending increased by 14.7% on May and buy-to-let by 13.5%, a combined increase of 14.4% or £2 billion.

The Equifax Touchstone data covers 92% of the intermediated lending market and shows that the average value of each residential mortgage in June was £185,551, against £175,278 in the same month last year.

The average buy-to-let loan was £156,573, up from £146,150 last year.

Year-to-date residential sales are up 9.8% (£5.6bn) compared to 2014, with buy-to-let up 25.3%.  

Iain Hill, relationship manager, Equifax Touchstone, said: “June has seen record post-crisis sales figures and the rate of growth has also increased significantly as the buoyancy resulting from a clear-cut election result continues.

“The month-on-month total lending increase of 14.4% for June compares to growth of just 3.3% growth the previous month.”

Hill said a number of impending changes will affect the housing market's supply/demand dynamics, and that may impact on mortgage lending.

"New restrictions on housing association rents will make it more difficult for them to build affordable homes, creating opportunities in the private sector as demand increases.

“The fallout of the Chancellor’s move in the Budget to reduce tax relief on mortgage interest payments is also one to watch.

“This may fuel rent increases by either reducing rental stock or landlords recovering the lost tax relief through higher rents.”

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