In a strong indication of stability in the UK’s housing market, mortgage lending increased by 5.6 per cent annually in October 2018, according to latest statistics from UK Finance.
Gross residential mortgage lending touched £25.5bn in October 2018, 5.6 per cent more than the corresponding period in 207.
The number of mortgages approved by the main high street banks in October was 4.1 per cent lower than last October; although approvals for house purchase were 3.6 per cent higher.
Remortgage approvals were 13.5 per cent lower and approvals for other secured borrowing were 1.3 per cent lower. Remortgaging activity has softened, following a period of strong growth driven by fixed rate loans reaching maturity and anticipation of August’s base rate rise.
UK Finance is a trade association, which represents the banking and finance industry operating in the UK. It represents more than 250 firms in the UK providing credit, banking, markets and payment-related services. Mortgage data provided by UK Finance reflects the health of the housing market.
The latest statistics indicate that housing market remained stable despite talks on Brexit reaching a conclusion. The year-end subdued market is common for this time of the year. Stakeholders of the housing sector expect this trend to continue till March 2019 when the UK finalises the Brexit deal.
Eric Leenders, Managing Director, Personal Finance at UK Finance, said: "Overall mortgage lending grew in October, despite an uncertain economic environment, while house purchase mortgage approvals by the main high street banks were also up on the previous year."