Hope Capital reacts to latest UK Finance figures
Gross mortgage lending reached £22.1bn in June some 9% higher than May and 3% higher than last year, according to the latest UK Finance estimates.
As such gross mortgage lending for Q2 2017 stood at an estimated £60.3bn – up 3% increase on Q1 and 6% on the £57.1bn lent in the second quarter of 2016.
Jonathan Sealey, chief executive of Hope Capital (pictured), reacts to the figures: “Although gross mortgage lending in June was up on May this year and in June last year, it’s clear that the issue of long term affordability is still evident, with gross mortgage lending down 1% on the first half of 2016.
“The buy-to-let market’s weak start to the year has played a part in terms of its contribution to overall net mortgage lending, and the political and economic uncertainty is still affecting the market. In these uncertain times, some homeowners will take the wait and see approach. Others have been rushing to remortgage on to long term fixed rate deals, giving themselves protection from rises until 2022.
“However, inflation unexpectedly fell earlier this week, and this fall puts the interest rate hike later this year in doubt. A rise in rates against the backdrop of falling wages would negatively impact consumer spending which would be bad news for the economy. It will therefore be interesting to see how the Inflation Report next month addresses these figures and how they will factor into future prospects.”