Gross mortgage lending in May (not seasonally adjusted) showed little change on the previous month or on the same month last year, according to the Council of Mortgage Lenders (CML).
It rose by 2% on the previous month to an estimated £16.2 billion, but was 3% lower than the £16.8 billion of lending undertaken in May 2014.
The CML said that forward indicators of lending, such as Bank of England data on approvals, suggest that the market can expect an upturn in lending over the coming months, reflecting the CML’s assessment that a modest recovery is under way.
Mohammad Jamei, CML economist, said: “The economic environment is one that should support increased activity in the near term, coupled with low mortgage rates. But while we expect these factors to support activity, there is a limited upside, driven mainly by affordability constraints.”
John Eastgate, sales and marketing director of OneSavings Bank, added: “You might say that mortgage market activity is back with a vengeance, but if you look beyond the minimal effects of uncertainty surrounding the General Election it never went away. Borrowers and new buyers continue to exhibit strong demand for mortgage finance.
“This will feed through into June and July’s lending data when it is published. The UK housing market remains solidly anchored, with activity in the buy-to-let sector notably strong.”
