The month of March greeted gross mortgage lending with a slight surge. According to figures from the Council of Mortgage Lenders (CML), in February lending was £15.4 billion, which was still higher than the £11.6 billion in March 2013.
This year’s first three month gross mortgage lending accounted for £46.3 billion, representing a 10% decline from the fourth quarter of last year. But this was up 37% compared to the £33.8 billion in the first three months of 2013.
The housing market continues to strengthen and is expected to stimulate the recovery of the British economy and labour market, says Bob Pannell, chief economist at CML. At the moment, the upcoming new rules under the Mortgage Market Review (MMR) are not expected to cause market disruptions.
However, research conducted by Precise Mortgages reveals that Britons have little confidence in the mortgage market and many agree that it is in poor health, especially when it comes to access to loans for aspiring home owners. The survey also shows that 62% of the polled Britons would like to buy a home in the next five years. Still, many are concerned about possible hurdles along the way.
Some of the difficulties ahead include people’s inability to save money for a larger deposit. Another 53% of aspiring home owners agree that the market is still favouring those with large deposits, while 39% believe that mortgages are too hard to obtain for first time buyers.