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TODAY'S OTHER NEWS

Mortgage figures may be first sign of post-election bounce

Although the housing market is showing few signs of igniting following the election slowdown, there is at least some good news from a mortgage consultancy which shows significant increases in lending during May.

Analysis from Equifax Touchstone shows that both residential owner occupier borrowing (totalling £11.1 billion) and buy to let borrowing (at £3.4 billion) in May were higher than in April, with increases of 2.0 and 7.8 per cent respectively. 

This is a combined 3.3 per cent increase in mortgage sales volumes month-on-month. The average value of each mortgage in May was £183,454 for residential owner occupier (up from £176,361 in May 2014) and £155,916 for buy-to-let (a small rise on the May 2014 figure of £152,936).

May 2015 was the second highest month in terms of mortgage lending volumes in the last eight years.  Monthly figures were beaten only by March 2015, when lending volumes reached £15 billion.

The Equifax Touchstone data covers 92 per cent of the intermediated lending market. 

“An increase in lending volumes of £710m (26.5%) year on year shows a dramatic rise in the popularity of buy-to-let mortgages as retirees unlock pension pot capital and invest in property to generate income” says Iain Hill, relationship manager at Equifax Touchstone. 

  • Tim Gorgulu

    Good to see a boost in the figures. But again it looks like the BTL sector is the big winner, something which doesn't help the thousands of young people who are struggling to save for a deposit - tomorrow's budget will certainly be interesting for property I think.

  • Felicity Blair

    It's clear to see that this unlocking of the pension pot has created a major boost in the amount of BTL mortgages which are being processed. Agreed Tim, tomorrow should certainly clear things up and let the property industry know where they stand, particularly on the heavily contested BTL tax breaks.

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