As we write, Virgin Money has reported a 30% jump in mortgage lending to £2.1bn in the first quarter of 2016 compared to the same quarter last year. This was in line with the surge in mortgage lending caused by the rush to beat the 3% stamp duty increase for buy-to-let and second homes in April. Gross mortgage lending was £17.1 in March, according to the British Bankers Association, 64% higher than a year ago and the highest since April 2008. The Council of Mortgage Lenders analysis suggests there was £4-£5bn of extra lending than would have otherwise been the case. House price inflation looked somewhat correlated with this as prices rose 4.2% in the first quarter according to Hometrack – the highest quarterly rate for 12 years.
PegasusCapital - Thu 5th May