Mortgage lending hits March record

Gross mortgage lending reached a March record of £31.3 billion according to the latest data from the Council of Mortgage Lenders (CML).

This was a leap of 22% from February's lending figure of £25.5 billion and is 10% higher than the £28.3 billion of lending reached in March last year.

Commenting on today's data CML Director General Michael Coogan said: "This is the highest-ever March lending figure. It is clear that many borrowers are taking sensible steps to shelter against higher mortgage costs. There is still a question mark over just how strong mortgage lending will be over the coming months as the prospect of higher interest rates takes its toll on demand. But, we continue to expect mortgage lending to reach a record £360 billion this year."

British Bankers’ Association (BSA)

Total sterling lending to the UK private sector showed a net underlying increase of £9.7bn (+0.8%) to £1,299bn. This compares with an underlying rise of £9.0bn in February and an average of £11.6bn over the previous six months.

Net mortgage lending rose by an underlying £5.1bn. This was unchanged from the slightly downwardly revised increase last month but lower than the monthly average of £5.5bn over the previous six months. Unsecured personal lending fell by £0.2bn in March, similar to the fall in February. Credit card borrowing accounted for £0.1bn of the fall, with loans and overdrafts virtually unchanged.

There was a strong lending increase to real estate companies (+£1.1bn), but there were decreases in lending to construction (-£0.2bn), manufacturing (-£0.1bn) and transport, storage and communication (-£0.1bn).

Deposits from the private sector rose by £8.1bn (+0.8%) to £970bn. Personal deposits increased by £3.7bn, slightly higher than the average growth of £3.2bn over the previous six months.

David Dooks, BBA director of statistics, said: “Since interest rates began rising last August, higher mortgage costs have been absorbed by households and high lending growth continued, to keep up with rising prices. In the last two months, demand has moderated a little and, with no short-term prospect of costs reducing, mortgage lending growth should ease further in the months ahead.

“Higher mortgage costs for households are no doubt a factor in the subdued demand for unsecured borrowing.”