Mortgage lending up more than a third

But new mortgage regulations could put a break on continued rise

Gross mortgage lending was an estimated £46 billion in the first three months of this year, according to the Council of Mortgage Lenders, an increase of 37 per cent compared to the same period in 2013.

In March alone, mortgage lending was an estimated £15.4 billion, four per cent higher than February and a third higher than March last year.

"There are currently no signs of significant market disruption, arising from the imminent application of new lending rules associated with the Mortgage Market Review," said CML chief economist Bob Pannell. "While some mortgage lending indicators have eased back gently, this is from the very high levels of recent months."

Simon Crone, Vice-President Europe at mortgage insurance provider Genworth said: "It will be intriguing to see the lending figures for the next few months as it is highly likely lenders will pull back on their lending levels as they seek to ensure their compliance with the new regulations plus the tighter affordability rules mean that a number of borrowers will not be able to access finance as they would have pre-MMR.

"For first-time buyers looking for mortgages in the next few months the market may not be accommodating as it was at the start of the year. First-timers still have considerable issues to overcome in terms of saving for a deposit and meeting these new criteria conditions from lenders."

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: "The lending market continues to strengthen as a result of the combination of cheap finance and lenders with a real appetite to lend. With the MMR introduced next weekend, some borrowers will find the mortgage application process more protracted but with many lenders having already introduced the new rules, it should be a fairly smooth transition on the whole."

Richard Sexton, director of e.surv chartered surveyors said Help to Buy is supporting the bottom of the market by making mortgages more accessible. "One in six loans are now to high loan-to-value borrowers," he said, "meaning it is now relatively easier for first-time buyers to tap into the property market.

"But the new MMR regulations will ensure that even as lending is increased, the recovery remains responsible. Borrowers will be stress tested to make sure they can afford future interest rate rises. Now wage growth has overtaken inflation, a base rate rise may happen sooner than originally thought. That will be the next big move for lending, and we may see a temporary slowdown as banks adjust to the new, tighter rules."

A report from Precise Mortgages shows that nearly a third of people believe access to mortgage is improving but is still not good enough, with two thirds still concerned about their ability to save a large enough deposit.

"The research presents an interesting conundrum," said Alan Cleary, Managing Director of Precise Mortgages. "On the one hand confidence has returned and this is being rightly celebrated across the industry but there appears to be a delay in this buoyancy filtering down to the consumer. Ultimately, the market is there to serve them and yet many of them feel unserved by lenders and concerned that access to the market is denied to them. 

Discover more property articles at Homes and Property
Arts and Entertainment
Lionel Richie has made the top spot after a strong Glastonbury performance
musicAnd what's more it's the last Sunday night chart topper - ever!
News
news
Life and Style
The collection displayed Versace’s softer side, with models wearing flowers and chiffon dresses in unusual colourings
fashionVersace haute couture review
Arts and Entertainment
DJ Chris Moyles who claimed to be a second-hand car dealer in a bid to save up to £1 million in tax, a tribunal has found
radio
Arts and Entertainment
'The Leaf'
artYes, it's a leaf, but a potentially very expensive one
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Home Care / Support Workers

£7 - £10 per hour: Recruitment Genius: This care provider is looking for Home ...

Recruitment Genius: Web Team Leader

£30000 - £35000 per annum: Recruitment Genius: One of the UK's leading web des...

Recruitment Genius: Client Manager

£27000 - £35000 per annum: Recruitment Genius: A growing, successful, friendly...

Recruitment Genius: Property Negotiator - OTE £20,000+

£16000 - £25000 per annum: Recruitment Genius: This family owned, independent ...

Day In a Page

Greece says 'No': A night of huge celebrations in Athens as voters decisively back Tsipras and his anti-austerity stance in historic referendum

Greece referendum

Greeks say 'No' to austerity and plunge Europe into crisis
Ten years after the 7/7 terror attacks, is Britain an altered state?

7/7 bombings anniversary

Ten years after the terror attacks, is Britain an altered state?
Beautiful evening dresses are some of the loveliest Donatella has created

Versace haute couture review

Beautiful evening dresses are some of the loveliest Donatella has ever created
No hope and no jobs, so Gaza's young risk their lives, climb the fence and run for it

No hope and no jobs in Gaza

So the young risk their lives and run for it
Fashion apps: Retailers roll together shopping and social networking for mobile customers

Fashion apps

Retailers roll together shopping and social networking for mobile customers
The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate