AMI predicts gross mortgage lending will reach £145bn in 2013

The Association of Mortgage Intermediaries (AMI) predicts gross mortgage lending could reach £145bn in 2013. It also predicts that more borrowers will recognise the value of mortgage brokers and approach them for advice.

The AMI reported that positive moves in the UK economy will drive this increase. It has been announced that the UK has moved out of recession, kept inflation under control and improved the national employment position with another reduction in unemployment (now reported at 2.1m), all of which are contributors to this prediction. It was stated that the Funding for Lenders scheme is too new to understand what effect it might have on the market, however, at Harvey Bowes we have already seen evidence that lenders in receipt of these funds have reduced the rates offered to attract new borrowers. From a practical and ‘on the ground’ view-point I would consider the FLS to be another positive directive which will fuel the market to a certain extent – but it does need more than a mere £80bn in the scheme.

Total gross mortgage lending has remained more or less flat for the past 3 years, therefore if the prediction is correct, and we see £145bn in 2013, this is a positive, albeit small, step in the right direction.

About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

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