The latest CML lending figures, May 2016
Andy Knee, chief executive of LMS, said:
“The mortgage market in May appeared confident, with the value of borrowing up year-on-year for home-owners, first-time buyers and remortgagors. Just buy-to-let lending was down when compared to May 2015, hampered by the change to stamp duty.
“The surprise result in the UK vote to leave the EU does mean a certain volatility in the housing market will ensue in the coming months and it is not yet clear exactly how this will play out, but we’re seeing little evidence anecdotally of purchases or transactions falling through.
“The Bank of England looks likely to lower the base rate to a new historic low of 0.25%, which could ensure competitive mortgage rates continue to be offered, presenting an opportunity for existing homeowners to remortgage and reduce their outgoings. However, this is not all good news as lender appetite for risk will be lower in the current economic climate, which could hamper chances for some first-time buyers.”
