CML: Year-on-year increase in gross mortgage lending data
Monday, 23 January 2012 9:42 AM
Gross mortgage lending in December was an estimated £11.7 billion, according to the Council of Mortgage Lenders. This represents a 12% drop from £13.2 billion in November but a 12% rise from December 2010 (£10.5 billion). December was the fifth month in a row of higher year-on-year lending.
Lending totalled an estimated £37.3 billion in the fourth quarter of last year, down from £39.2 billion in the previous quarter but 11% higher than the last three months of 2010 (£33.6 billion).
For 2011 as a whole, estimated lending totalled £140 billion, slightly above our annual forecast of £138 billion. This is up 3% from £136 billion in 2010.
CML chief economist Bob Pannell observes:
"The closing months of 2011 saw stronger mortgage lending activity and housing transactions, despite the fact that short term economic prospects are challenging.
"There is a glimmer of light ahead for households in that real incomes could stabilise and perhaps even start rising by the end of the year. But, continuing Eurozone problems mean that mortgage funding prospects are uncertain, so overall UK mortgage market conditions for the year ahead remain difficult to call."
Today’s market commentary outlines the CML view of market conditions.
DOCUMENTS ATTACHED
Gross mortgage lending table for December
NOTES TO EDITORS
1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 94% of all residential mortgage lending in the UK. There are 11.2 million mortgages in the UK, with loans worth over £1.2 trillion.
2. The Council of Mortgage Lenders does not publish statistics for mortgage approvals. The data in our monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.
3. Next month’s gross mortgage lending press release and market commentary will be published on 20 February 2012.
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