Mortgage lending continues to rise
Mortgage lending rose once again in June, with loans issued for house purchases continuing to drive the market.The latest data reveals total gross lending in June grew by six per cent on the month to £17.9 billion - a rise of 20 per cent on the previous year's figure. The quarterly figure was £51.4 billion - up 11 per cent on the first quarter and 23 per cent on the second quarter of 2013.According to the Council of Mortgage Lenders (CML), there were 28,600 first-time buyer loans issued in June - a rise of seven per cent on the previous month. The value of the loans rose 11 per cent on the month and 27 per cent on the year, to £4.2 billion.There was a less pronounced rise in lending to home movers, with the number of loans up four per cent on the previous month and 11 per cent on the year. The value of such loans rose to £5.9 billion - five per cent higher than May's figure and up 23 per cent on June last year.Buy-to-let lending grew five per cent over the month to £2.2 billion in June, registering particularly strong yearly growth of 38 per cent by value and 23 per cent by number.Remortgage lending was muted for both first-time buyers and home-movers, with the number up by one per cent on May but down eight per cent on the year. The value of such loans rose by six per cent on the month and the year, however, reaching £3.7 billion.The introduction of new regulatory rules in the second quarter of 2014 had a negligible impact on first-time buyer characteristics. This group borrowed on average £122,000, up from £118,750 in the first quarter of the year. Home-mover characteristics also changed marginally.Paul Smee, director-general of the CML, said: "For the second month running since new Financial Conduct Authority rules took effect, lending characteristics remain similar to the market beforehand. "We now feel confident that, as we would hope, the Mortgage Market Review (MMR) effect is more gentle dampener than hard brake."
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