Mortgage lending increasing in 2014, says the Council for Mortgage Lenders (CML)

With the residential property market conditions improving, the Council of Mortgage Lenders (CML) forecasts that activity levels in the mortgage market will grow in 2014.

The CML is forecasting an increase in gross lending from an estimated £170 billion in 2013 to £195 billion this year, increasing further to £206 billion in 2015. The CML anticipates that net advances are likely to rise from £10 billion this year to £15 billion next year and £20 billion in 2015.

The CML also anticipates that the number of mortgages 2.5 per cent or more in arrears is likely to stay stable next year at around 150,000, but rise modestly to 160,000 in 2015. The number of repossessions is expected to fall from around 30,000 this year to 28,000 next year before returning to 30,000 in 2015.

Bob Pannell, CML Chief Economist, said, “Gross mortgage lending climbs above £190 billion next year, its highest level since 2008. While this is largely on the back of the continuing revival in housing market activity, we also expect to see a meaningful turn-round in remortgage activity.

“Despite a strong pick-up in gross mortgage lending, we have pencilled in relatively modest net lending figures - £15 billion in 2014 and £20 billion in 2015.”

Peter Lawrence at Lawrence Rand added: “This forecast in increased mortgage lending from the CML is another indicator of improved confidence and activity in the residential property market.

Anyone thinking of moving in 2014 is advised to speak to us and we shall be pleased to provide tailored mortgage information as a well as a market appraisal of any existing property.”