It may come as a surprise to know that despite all the post-Brexit hype and fears, mortgage lending in the UK rose to an 8-year high in June.
Figures released by the Council of Mortgage Lenders demonstrate that gross mortgage lending reached £20.7 billion, 16 per cent higher than the previous month and the highest figure since 2008, when lending peaked at £22.6billion. In June last year mortgage lending was £20.1 billion.
The gross mortgage lending figure for the second quarter of 2016 was therefore as estimated £56.1 billion. This is 10% lower than the first quarter of this year, but 8% higher than the second quarter of 2015.
Homeline Mortgage and Protection Consultant Oliver Bishton commented, “It’s not a surprise that lending figures were strong in June as interest rates continued to remain low with the expectation of a further drop, which has subsequently happened. We are seeing lenders dropping their rates again which makes it a really good time to see what mortgage offers are out there for anyone thinking about taking out a mortgage or reviewing an existing one’.
The Times also reported that property transactions rose by 4.9 per cent in June, according to figures from Revenue & Customs, suggesting that homebuyers were not put off by the referendum. There were 94,550 residential property transactions of £40,000 or more last month, showing a steady rise back to normal levels.
Ollie added, “There are a lot of mixed messages in the media about the property market, but at present – here at Homeline Mortgages things seem to be continuing pretty much as usual. If anything the market seems quite buoyant.”