According to the CML, home-owners borrowed 13% less in the month following Brexit.
Home-owners borrowed £10.6Bn in July, the month following Brexit, a total of 13% less than they did in June, according to the Council of Mortgage Lenders (CML).
In the first full month since the UK voted to leave the European Union, the total number of loans fell by 14% to 58,100, with the fall amongst first-time buyers particularly pronounced. They borrowed £4.4Bn a drop of 19% from the previous month, which saw an exceptionally high number of lending.
Home-movers borrowed £6.2bn, down 9% on June and 16% compared to a year ago and landlords borrowed £3bn, up 3% month-on-month but down 21% year-on-year.
However, the CML said it was still too early to assess the impact of the Brexit vote on the housing market.
Paul Smee, Director General the CML, said: “These figures cover the first full month of lending following the EU referendum. They show a month-on-month decline in first-time buyer and home mover activity and muted activity on the BTL market. It is hard to determine whether these figures reflect a first uncertain reaction to the referendum vote, or are a sign of a market which was already cooling. It will be quite some time before a full assessment can be made”
Peter Williams, Executive Director of the Intermediary Mortgage Lenders Association, said: “Conclusive evidence on the state of the mortgage market will be hard to come by for some months following the triple whammy of stamp duty reform, the Brexit vote and the first base rate change since 2009. All of this, plus the summer holiday season, means we will be waiting for some time to determine the shape of things to come in the second half of the year.”
Data from the Office for National Statistics (ONS) suggested house prices rose by 8.3% in July, compared to 9.7% in June.
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