According to the latest UK Finance Update on Lending report, the UK’s mortgage market has had a great start to the year, with January’s gross mortgage lending sitting at an estimated £21.9bn.
The Office of National Statistics (ONS) recently reported that the Consumer Prices Index (CPI) 12-month rate remained unchanged at 3.0 per cent in January 2018. The lack of change has been primarily down to a reduction in prices of motor fuel, which rose by less than they did a year ago; this has offset an increase in the prices of other goods.
Unemployment rose to 4.4 per cent according to the ONS; there were 32.15 million people in work, which is still 321,000 more than a year earlier.
UK Finance reported that credit card spending rose slightly in January, sitting 5.8 per cent higher than in January 2018.
The UK’s gross mortgage lending is estimated at £21.9bn, almost ten per cent higher than the same time last year. Although UK Finance is yet to release the breakdown of mortgage lending, the increase is likely to be down to the continued strength of first-time buyer and re-mortgage activity, which is reinforced by Eric Leenders’s statement on customers taking advantage of competitive mortgage deals.
Eric Leenders, Managing Director, Personal Finance at UK Finance said:
“January saw higher levels of repayments on credit cards, which is expected at this time of year as customers pay off their festive spending. Meanwhile, households were careful with their outgoings as wage growth remains below the inflation rate.
“Gross mortgage lending in January increased by almost 10 per cent compared to the same period last year, and was higher than the monthly average, as customers took advantage of mortgage deals on offer at the end of 2017.”
Henry Knight, Managing Director, Springtide Capital commented: “It’s good to see a positive start to mortgage lending in January, with an almost ten per cent increase compared to the same time last year. We’ve also seen this trend at Springtide Capital, with competitive mortgage deals providing existing borrowers with the opportunity to re-mortgage; Government incentives also encourage continued first-time buyer activity.”