“There is no mistaking that the mortgage market appears to be in rude health this summer having posted the highest monthly lending total of the post-recession era. Lenders have clearly regained their appetite for business after repeatedly tightening loan criteria over the last 18 months.
“Affordability checks designed to promote responsible lending are set to bite harder as the market grows. This suggests there is little prospect of activity growing unchecked, especially as the Bank of England is likely to take pre-emptive action to counter any signs of instability. The eventual interest rate rise will also have a dampening effect, particularly as house prices continue to rise, and the next wave of regulation is just around the corner in the form of the EU Mortgage Credit Directive which puts another potential hurdle in the way of long term recovery.
“For now, consumers will be encouraged to see the gateways are still open to getting a mortgage under the new regime. But there are still important questions to answer about whether the current lending recovery is benefitting the many or the few.”
For further information please contact:
Andy Lane / Will Muir, Instinctif Partners
Tel: 0207 427 1422 / 29 / email@example.com
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 41 banks, building societies and specialist lenders include 16 of the 20 largest UK mortgage lenders (measured by gross lending) and account for about 90% of mortgage lending (89.4% of balances and 90.6% of gross lending).