Bank of England June Net Lending Commen

Following the announcement from the Bank of England on 29th July 2022 that net mortgage lending fell to £5.3bn in June from £8bn in May.

John Phillips, national operations director at Just Mortgages said: “Although this may at first seem like a significant fall in net lending in June we should remember that there was a considerable spike in May and volumes are still well above the pre-pandemic average.

“In an environment of high inflation, rising interest rates and a cost-of-living crisis the mortgage market is showing tremendous resilience. Despite fears of a cooling housing market, feedback from our brokers across the country is that mortgage demand remains high and, with relative low stock levels, house prices remain robust.

“We are expecting borrowers’ ability to satisfy lenders’ affordability rules to be affected by increases in household spending on fuel, food and energy but this has yet to materialise is any significant way and there is still an appetite from borrowers to secure a deal before further rate rises. However, completion times are being stretched and so we should expect a lag in housing transactions over the coming months.”