CCR Magazine

CSA Top Banner
You are here  :Home arrow News arrow Response to CML Mortgage Lending 2015
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Response to CML Mortgage Lending 2015 PDF Print E-mail
Tuesday, 26 January 2016

Figures reported today by the Council of Mortgage Lenders have shown gross mortgage lending for the UK on the rise overall. Over £220bn was lent in 2015, the highest since 2008 and an 8% increase over 2014.


However, research conducted by London Central Portfolio has shown that absolute levels of lending still remain 38% down since 2007. In comparison to the value of total property sales (calculated by number of sales x HM Land Registry average prices), it has actually fallen 46% since 2008, just prior to the global financial crisis.

“Comparing gross lending to the value of total sales in 2015 calls into question Mark Carney’s reservations that household debt remains at very elevated levels, leaving many families vulnerable. Mortgage caps and measures to curtail buy to let investment have been introduced in the last 18 months to stabilise the market as fears of dangerous levels of lending have arisen. However, a closer look at the data suggests that families have actually been taking smaller and smaller loans since 2008 or not borrowing at all, despite a 23% increase in average prices. This is concerning if the UK is to continue to recover from its the credit crisis as sales volumes are still 23% down. The Government, therefore, needs to look carefully at unduly dampening the market.”

“It is interesting to see a small fall away in lending in December to £19.9bn, coinciding with a new 3% additional Stamp Duty announced by the Chancellor. It is our expectation that lending will continue to fall into 2016 as economic confidence remains low, global financial markets suffer turmoil and taxes aimed at the property market come into force."

"As Osborne heralded the year with the downbeat announcement of “a dangerous cocktail of new threats [to the economy]”, it is likely that negative sentiment will continue to have an adverse effect on the size and number of housing loans taken out in the short term” comments Naomi Heaton, CEO of London Central Portfolio
 
Enghouse Side Banner

CSA side

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

CSA

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197