Mortgage lending in the UK reaches pre-recession levels


The booming housing market has seen mortgage lending in the UK reach its highest level since before the recession started in 2007, says the Council of Mortgage Lenders.

Mortgage lending reached £20 billion in August which is a 12% rise on the year previously, though it’s also an 8% decline on July’s figure.

The annual increase is good news for the mortgage industry because after August 2007 the mortgage market was hit by the financial crisis.

That’s when mortgage lending halved by August 2008 and it’s taken since then to recover to 2007 levels – and that has taken 12 months of steady growth.

The CML’s chief economist, Bob panel, said: “This is the best spell since 2008 for mortgage lending which comes on the back of house purchases and remortgaging activity picking up over the summer.”

Mortgage activity will continue to grow until the end of the year

He added that growth in mortgage activity will continue until the end of the year although there are issues with affordability for home movers and first-time buyers.

In addition, the Halifax says that house prices have grown at their fastest since May 2014.

Financial experts are now predicting that the low mortgage interest rates, high employment and strong consumer confidence will help push up house prices even further.

However, there is currently an oversupply in mortgage lenders who have money for mortgage loans and not enough people who meet their lending criteria.

This will mean, say financial experts, that interest rates will remain low for the foreseeable future and the lending criteria for mortgages will be loosened to help lenders meet their volume targets.

Crystal’s eSource will boost bridging loan brokers

A new sourcing system for financial brokers covering bridging loans, mortgages and secured loans has been launched by Crystal Specialist Finance.

They have called their new system eSource which can be used on any device or operating system and it will, the firm says, help boost a broker’s point-of-sale business.

Bridging loan brokers will be able to produce immediate comparisons of secured lending options versus available mortgages to their clients.

eSource complies with the Mortgage Credit Directive

Their eSource system also complies with the upcoming Mortgage Credit Directive.

Crystal’s managing director, Jo Breeden, said: “eSource makes what is seemingly a difficult market accessible and open.”

He added that the firm was striving to improve their service offering and that the loan brokering industry will increasingly rely on similar technology in the future.