In 2016 mortgage lending totalled £246bn – a 12% increase from 2015’s figure of £220bn according to the Council of Mortgage Lenders.
In December 2016 lending fell by 4% from November but was still 4% higher than December 2015.
Mohammad Jamei, CML senior economist, said: “The UK housing market, much like the wider UK economy, ended 2016 on a generally positive note.”
John Eastgate, sales and marketing director of One Savings Bank, owner of Kent Reliance, Interbay Commercial and Prestige Finance, said: “The mortgage market has blown hot and cold over the last 12 months, as borrower sentiment has been impacted by economic uncertainty both before and after the EU referendum, although some of the lowest mortgage rates in history have helped to maintain demand.
“December’s dip in lending activity could be explained by a traditional seasonal slowdown and it would be wrong to conclude too much from it.”
He added: “Looking ahead, activity in the mortgage market is expected to grow in 2017, but this growth will likely be more subdued than last year.
“Consumer confidence remains fragile, buy-to-let landlords are coming to terms with greater regulation, aspiring homeowners face greater affordability pressures, and homeowners are likely to lock into longer term fixed rates which could see more subdued lending figures toward the end of the year.
“Taken together, overall conditions are supportive of sustainable growth in gross mortgage lending, but we’re unlikely to be seeing the peaks and troughs of 2016.”
