Gross mortgage lending for February 2019 stands at £19.1bn

According to the latest Household Finance Update from UK Finance, Gross mortgage lending across the residential market in February 2019 was £19.1bn, some 2.5 per cent higher than the same month in 2018. 

This follows several months of strong growth in remortgaging in 2018, as customers took advantage of a competitive mortgage market to lock into attractive deals

  • The number of mortgages approved by the main high street banks in February 2019 was 2.2 per cent lower than the same month in 2018.
  • Approvals for home purchase were 1.5 per cent higher, remortgage approvals were 6.6 per cent lower and approvals for other secured borrowing were 3.1 per cent lower.

THE ECONOMY

The Office of National Statistics reported that the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.8% in February 2019, unchanged from January 2019.

 

HOUSING

Halifax House Price Index

House prices in the three months to February were 2.8% higher than in the same three months a year earlier – up from the 0.8% annual growth rate recorded in January.

  • In the latest quarter (December – February) house prices were 1.8% higher than in the preceding three months (September – November)
  • The average house price is now £236,800

 

Russell Galley, Managing Director, Halifax, commented:

“Annual house price growth at 2.8%, is within our expectations, but is fairly subdued compared to 2015 and 2016, when the average growth rate was 8.3%. People are still facing challenges in raising a deposit which means we continue to expect subdued price growth for the time being”

 

Henry Knight, Managing Director of Springtide Capital commented:

“Monthly home sales are remaining steady. Brexit concerns are, of course, the cause for hesitancy amongst buyers and we don’t expect any change in this until we see some certainty”

 

Bank of England Statistics for February 2019

Individuals’ net borrowing through mortgages was slightly weaker in February, at £3.5 billion, and was slightly below the £3.8 billion average of the past six months. Mortgage approvals for house purchase (an indicator of future lending) fell back slightly, to 64,300, also slightly below the average of the previous six months of 65,500. Approvals for remortgaging, meanwhile, were 47,700, below the 49,500 average of the previous six months.

 

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/february2019

https://static.halifax.co.uk/assets/pdf/mortgages/pdf/February-2019-Halifax-House-Price-Index.pdf

https://www.bankofengland.co.uk/statistics/money-and-credit/2019/february-2019