Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Net Mortgage Lending Falls Sharply in May
Net mortgage lending in the UK dropped by 34% from £4.4 billion in April to £2.9 billion in May, according to the latest data from the Bank of England. This marks the lowest monthly total for net lending in a year and is below the previous six-month average of £5.1 billion.
Approvals for remortgages also saw a significant decline, falling by 34% from 51,200 in April to 33,300 in May. The Bank of England notes that this figure does not include product transfers where borrowers remain with the same lender. House purchase approvals decreased by 15%, from 66,000 in April to 56,200 in May.
Gross lending was slightly lower at £27.1 billion in May compared to £27.4 billion in April, but remained above the six-month average of £25.3 billion. Repayments increased marginally to £22.9 billion, up from £22.6 billion the previous month. The Bank of England explained that the difference between gross lending minus repayments and net lending figures is due to varying seasonal adjustment methods.
These figures highlight a period of reduced activity in the UK mortgage market, which may be relevant for letting agents and inventory clerks monitoring trends in property transactions and market demand.
Source: Mortgage Strategy