UK: Mortgage lending drops to lowest level since 2016

The Bank of England (BoE) has released its latest data on lending for the first quarter of 2018, which shows the value of new commitments agreed to by lenders dropping significantly to their lowest level in almost 2 years.

The value of new commitments in Q1 2018 totalled £61.1 billion, a decrease of 5.9% compared to the last quarter of 2017.

Figures from the BoE show that while buy-to-let lending has increased for the first time since 2017, the proportion of lending to first-time buyers has decreased.

This suggests that the government’s intention to ‘level the playing field’ between these two groups has not yet taken effect.

On the other hand, remortgaging has continued to rise, now accounting for almost a third of all new lending.

This is while the proportion of total loans in arrears has continued to fall to the lowest figures since records began, with the outstanding balance in arrears now standing at £14.8 billion.

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