View more on these topics

Lending at another new high

Mortgage lending in June hit a new high for the third consecutive month,

according to the latest figures from the Council of Mortgage Lenders.

Total gross mortgage lending by banks and building societies rose to

£15bn from £13.6bn in May – the most lent in one month since CML

records began in 1998.

Lending purely for house purchase shot up to £9.6bn last month from

£8.5bn in May and £7.7bn in June 2000. Remortgaging continued its

steady rise, increasing to £4.4bn from £4.2bn in May and

£3.3bn last June, but fell as a proportion of total mortgage lending

to 29 per cent from 31 per cent.

Average new mortgage rates dropped again to 5.45 per cent in June from

5.53 per cent in May, with average new variable rates falling to 5.27 per

cent from 5.34 per cent. Variable rate mortgages accounted for 71 per cent

of lending last month.

Figures from The Building Societies Association support the CML findings.

Mutuals&#39 gross advances hit £2.3bn in June, up from £2.2bn in May

– the third month in a row societies have experienced a rise. Mortgage

approvals also increased, reaching £2.3bn last month from £2.1bn

in May.

Despite the record figures, the CML predicts rising house prices will lead

to a slowdown in lending over the remainder of the year.

CML director general Michael Coogan says: “Although mortgage lending has

again reached record levels, income multiples have been edging up over the

past year as a result of house price rises. The likelihood is that over the

coming months house prices and lending will begin to level off in response

to deteriorating affordability.”

Recommended

Platform broadens fixed rate range

Platform Home Loans is looking to the adverse credit market with the introduction of the one-year fixed rate mortgage.Platform specialises in the adverse credit market, which is made up of people who are unable to get a mortgage from a mainstream lender as they have had trouble paying their mortgage in the past, have levels […]

CML says lenders must innovate to keep share

Mortgage lenders must continue to innovate with new products or facedramatic loss of market share, warns the Council of Mortgage Lenders. Research by the CML suggests the ageing and increasingly migratoryhomebuying population will look to lenders capable of offering a morediverse range of mortgages over the next 20 years and desert those which donot. The […]

Opra forms on defaults could not be clearer

I read with interest the article in the July 12 edition of Money Marketingheadlined, Life offices slam Opra on multi default funds. The article states that: “…the regulator has allowed some providersto offer more than one default fund on stakeholder schemes although manyproviders had believed they were only allowed to register onedefault fund.” Friends Provident […]

Staffordshire steps out with new mortgage

Staffordshire Building Society is stepping out with the introduction of the two-year step discount mortgage.With a discount of 3 per cent in the first year and 2 per cent in the second year for loans of up to 90 per cent of valuation, this gives it a payable rate of 3.74 per cent in the […]

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com