The Council of Mortgage Lenders (CML) has estimated that gross mortgage lending totalled £18.9 billion in January.
This is 6% lower than December’s lending total of £20 billion, but 2% higher than the £18.6 billion lent in January last year. This is the highest lending total for a January since 2008 (£25.2 billion).
CML economist Mohammad Jamei said: “Overall mortgage lending continues to hold up pretty well, but we seem to have a twin-track market. Weakness in buy-to-let and home movers has been offset by an increase in first-time buyers and remortgage lending.
“A continuing acute shortage of homes being offered for sale is one aspect of a broken housing market, that looks unlikely to resolve in the near term.”
Keith Street, vice chairman, group lending at The Northview Group, added: “Despite this monthly fall in mortgage lending, overall borrowing continues to rise as more people take advantage of the current low mortgage rates, whether they’re remortgaging or securing a new property.
“To provide the best service, it is important brokers continue to serve all types of borrowers, and not just the more straightforward cases. A large part of the UK’s workforce is now comprised of contractors, the self-employed, and individuals who have complex income patterns. These are legitimate workers who in many cases can afford a mortgage, but often find their circumstances do not fit the lending criteria of traditional lenders. It is therefore vital that they receive the professional advice they need to point them towards lenders who are willing to meet their mortgage needs.”