The number of loans for house purchases rose by a quarter in the year to May, according to figures released yesterday, suggesting no dramatic effect from the raft of new regulations for the sector.
The Council of Mortgage Lenders (CML) announced that house purchase lending was up in value by 25 per cent to £9.6bn in May, when compared to the same month during 2013.
The figures give the first illustration from the group of the mortgage market review (MMR), a series of regulations introduced for lenders at the end of April.
“The impact appears subtle, rather than dramatic. First-time buyers and home movers continue to be key drivers in market growth and their activity does not seem to have been noticeably disrupted. There was no cliff edge,” said Paul Smee, director general of the CML.
Despite the fact that lenders are extending more credit for purchases than at this time last year, remortgage lending is down 15 per cent in value over the same period.
Credit to first-time buyers is most healthy of all, with 19 per cent more loans in total during the year and a 30 per cent jump in value.