“Today’s CML data indicates the early momentum for 2015 clearly rests with the remortgage market, with the number of loans rising in the first quarter while both first time buyer and house purchase lending are slowing. The fact that people are staying put for longer and mortgage pricing is at record lows gives people added incentives to reassess their existing loans, and should help to bring the remortgage market further out of its slumber.
“We are still in a transition period where year-on-year comparisons of lending activity hark back to the time before the Mortgage Market Review (MMR) was implemented. This undoubtedly has a distorting effect and means the annual drop in purchase activity should be treated with caution.
“All the same, there is no denying that regulatory creep over the last 12 months has had a subduing effect on the market and left a big question mark hanging over the potential for it to regain its previous momentum. Indeed MMR is designed to bite harder the more active the market becomes. On that basis lending will not run out of control, but we are still waiting for significant supply-side measures to balance the picture and help keep prices down.”
For further information please contact:
Andy Lane / Will Muir, Instinctif Partners
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 44 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).
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