LMS comments on the CML gross mortgage lending figure for October

Andy Knee, chief executive of LMS, comments on CML gross mortgage lending figure for October:

Andy said:
“It’s full steam ahead for the mortgage market as lenders grapple to make up for any lost targets from the beginning of this year. Stable wage growth, a sustained fall in unemployment and highly competitive mortgage deals offered by keen lenders are all likely to propel further mortgage borrowers to the market ahead of the day when the Bank of England interest base rate finally starts to rise.

“We should not let the positivity however, preclude us from the fact that affordability remains a pressing issue. Latest house price figures show continued growth* and recent reports suggest even supposedly ‘affordable’ starter homes will be out of reach for many. This should serve as cautionary advice to the Bank of England and the government that while imposing checks according to affordability criteria is prudent, rising house prices beg the need for an overarching strategy to deal with a severe shortage in housing supply.”