Gross mortgage lending for July 2019 stands at £26.1bn

According to the latest Household Finance Update from UK Finance, Gross mortgage lending across the residential market in July 2019 was £26.1bn, 4.0 per cent lower than the same month in 2018.

  • This is 2.9 per cent higher than the same month in 2018 and the highest since March 2016.
  • There were 95,126 mortgages approved by the main high street banks in July 2019, the highest monthly total since July 2009 when the figure stood at 99,970.
  • Mortgage approvals for home purchase were 16.4 per cent higher, remortgage approvals were 19.4 per cent higher.

THE ECONOMY

  • The Office of National Statistics reported the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.0% in July 2019, increasing from 1.9% in June 2019.
  • The Consumer Prices Index (CPI) 12-month rate was 2.1% in July 2019, increasing from 2.0% in June 2019

HOUSING

The Nationwide reported the following for July:

  • Slight slowing in the rate of annual house price growth to 0.3%
  • Modest 0.3% month-on-month rise, after taking account of seasonal factors
  • Average Price (not seasonally adjusted) £217,663

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“Annual house price growth remained below 1% for the eighth month in a row in July, at 0.3%. While house price growth has remained fairly stable, there have been mixed signals from the property market in recent months. “Surveyors report that new buyer enquiries have increased a little, though key consumer confidence indicators remain subdued. Data on the number of property transactions points to a slowdown in activity, though the number of mortgages approved for house purchase has remained broadly stable”

The Bank of England highlighted the fact that mortgage market activity has remained stable. Mortgage approvals for house purchase being at their highest level since July 2017. Net mortgage lending rose in July to £4.6 billion. Mortgage approvals for house purchase (an indicator for future lending) increased in July to 67,300.

Henry Knight, Managing Director from Springtide Capital commented:

“The July figures from UK Finance are the most encouraging for a while. The mortgage approvals figure was positive and we expect to see first-time buyer numbers continuing to increase across the whole country, including London”

At Springtide Capital we provide high quality impartial mortgage advice. We are a specialist mortgage broking business committed to providing a personal and efficient service. We understand the complexities of finding the right loan to suit both your financial and personal circumstance.

To speak to us today, call Springtide Capital on 020 3040 4400

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/july2019

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2019/Jul_2019.pdf

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