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Mortgage sector to pick up next year as loans revert to SVR

The mortgage market could get a boost next year when £25bn of mortgages revert to a standard variable rate, according to Lloyds Banking Group.

In a mortgage panel debate at the Sesame symposium in London last week, lenders were asked to predict what gross lending will be in 2012.

LBG sales director of mortgages Mike Jones said: “Next year looks like a similar year economically, all things being equal in the European dimension.

“But there is one fact that is different and it is the level of maturities from existing products into SVR.

“There is about £25bn coming into SVR next year and the question is how much of that might trigger a bit more activity in new mortgages, so we are more bullish about next year.”

The Council of Mortgage Lenders predicts gross lending will be around £140bn this year, although some commentators have suggested the market might struggle to hit that target.

Barclays intermediary channel director David Finlay said: “I think the number will be somewhere between £130bn and £135bn gross. Everything you look at says that is likely to be the number.”


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