The Council of Mortgage Lenders estimates that total gross mortgage lending increased by 4 per cent in April, compared to the previous month, reaching £12.1 billion, but cautions that meaningful comparisons with April 2012 are difficult.
Commenting on market conditions in this month’s figures, CML chief economist Bob Pannell observes: “Our forward estimate is that gross lending in April was £12.1 billion. This would have been 4 per cent up on March. The comparison with April last year – 21 per cent higher – is flattered by the temporary dearth of house buying activity immediately following the closure of the stamp duty concession.
“The true underlying position is that April is likely to have been one of the strongest months for lending activity since late 2008, but not as strong as the year-earlier comparison suggests. Gross lending on a seasonally adjusted basis has been running comfortably above £12 billion for several months, but this is still barely half the average level of lending seen in 2003-4.”
Richard Sexton, director of e.surv chartered surveyors, said: “We’re seeing a refreshed and more flexible mortgage market emerge in 2013, a market that is in a much stronger positions to cater for the dreams of aspiring homeowners. Last month marked the strongest April for gross mortgage lending since 2008. But the biggest marker of success is the range of borrowers that the new mortgage market is now able to reach.
“One in nine mortgages in April was to high LTV borrowers, 14 per cent higher than last year. Inflation is falling, confidence in the economy is improving, and the FTSE is at a record high. It’s a veritable cocktail of good economic news, and the strongest indication yet that the mortgage market has freed itself from the grip of the financial crisis.
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