Gross mortgage lending rose to an estimated £26.5 billion in January, up 11% from £23.9 billion in December, and reached a similar level to January 2007 when it was £26.6 billion, according to the Council of Mortgage Lenders (CML).
This is a good performance given the unsettled market conditions since last summer. Typically lending is lower in January than in December. However, gross lending volumes are expected to be lower in the coming months following the fall in mortgage approvals recorded by the Bank of England towards the end of last year.
CML Director General Michael Coogan commented: "Gross lending held up well in January. However, there is considerable uncertainty in the housing market at the moment and we expect lending volumes to be lower in the coming months. It is likely that demand will be stronger for remortgaging than for house purchase in the short term. Home-buyers might be more inclined to transact if their moving costs were reduced - and the government has the opportunity to address this by raising stamp duty thresholds and cutting the rates of stamp duty in next month's Budget."
