“We are still some way off a fully functioning mortgage market, even with a 10% quarterly and 21% annual increase in gross lending. With new checks and balances in place, there is still room for muted growth without the risk of careering out of control. The combination of MMR and macro-prudential action means there is now a strong safety harness fastened firmly around lending activity.
“Despite concerns from the Bank of England over rising house prices, there are also some encouraging signs for first time buyers with lenders increasingly willing to lend at 90% LTV and these products experiencing less of a price hike than at 75% LTV.
“The reality for borrowers is that mortgage pricing is likely to creep further upwards in the second half of the year. With a higher base rate on the cards and a shortage of sale properties still a reality, there is no sensible rationale for any further action to cool mortgage activity – certainly not while the full effects of recent changes are still unknown.”
For further information please contact:
Andy Lane / Ludo Baynham-Herd, The Wriglesworth Consultancy
Tel: 0207 427 1422 / 29 / Email: firstname.lastname@example.org
Notes to Editors
The Intermediary Mortgage Lenders Association (IMLA) is the trade association that represents mortgage lenders who lend to UK consumers and businesses via the broker channel. Its membership of 43 banks, building societies and specialist lenders include 18 of the 20 largest UK mortgage lenders (measured by gross lending) and account for about 90% of mortgage lending (91.6% of balances and 92.8% of gross lending).