UK’s mortgage lending has dropped significantly in the first quarter of 2018, with the number of new commitments agreed to by lenders at their lowest level since 2016, according to the latest Bank of England statistics.

The value of new mortgage loans was £61.1bn, a 5.9 per cent decrease from the fourth quarter of 2017.

Steve McNicholas, Managing Director – Credit and Marketing Data, Callcredit Information Group, commenting on the Bank of England Mortgage Lenders and Administrators Statistics 2018 Q1, said “It has been a slow start to the year, with mortgage lending down on the previous quarter. However, the value of total advances is up on last year, standing at £62.4 billion, with remortgages now accounting for nearly a third (32.9%) of new lending. Buy-to-let mortgages also saw a rise, suggesting property investors are adapting to the various new tax and regulatory requirements in this sector.”

“The proportion of high loan-to-income values has decreased, which is good news and illustrates that lenders are acting with caution. It’s essential for the economy that this continues and that robust affordability and thorough financial background checks remain a priority for lenders, to ensure consumers are not borrowing outside of their means.”

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