Mortgage lending forecasted to hit £286.8bn by 2019
By |Published On: 17th August 2015|

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Mortgage lending forecasted to hit £286.8bn by 2019

By |Published On: 17th August 2015|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

There is to be a growing demand for mortgage lending over the next four years, driven by a wider economic recovery, greater housing construction and more-tempting incentives.

That is the result of a report from a report by Timetric, which suggests that there is to be a boom in the coming years.


The greatest growth in mortgage lending is expected in 2017, with a forecasted rate of 11.7%. This prediction coincides with the Office for Budget Responsibility also suggesting that the largest rise in British property prices will occur during the same period.[1]

Timetric expect that gross lending will hit £218.6bn by the end of the 2015, before rising further to £241.6bn in 2016, eventually reaching £286.8bn in 2019.[1]

However, mortgage outstanding balances are expected to grow at a slower pace. Repayments are also likely to increase as a broader economic growth generates a rise in the official Bank of England policy rate and an increase in banks’ mortgage interest rates. Outstanding balances are tipped to hit £1.33 trillion by the end of this year, rising to be £1.39 trillion by 2019.[1]

Mortgage lending forecasted to hit £286.8bn by 2019

Mortgage lending forecasted to hit £286.8bn by 2019

Rising rates

Ben Carey-Evans, Analyst at Timetric, commented, ‘rising interest rates, combined with reduced growth in the UK housing market, is set to stunt increases somewhat from the 15% and 22% rates seen in 2014 and 2013 respectively. Improving economic conditions, however, particularly the continuation of improving real wages – due to extremely low inflation – should see gross lending rising at a steady rate up to 2019.’[1]

‘Growth in the mortgage market will be supported by rising house prices necessitating larger-value loans, and regional variations in house prices will continue to influence the distribution of mortgage lending,’ Carey-Evans concluded.[1]




About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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