Mortgage lending to rebound in 2020 and 2021

The mortgage market is set to return to growth over the next two years owing to lower levels of political uncertianty, the ‘New Normal’ report from the Intermediary Mortgage Lenders Association has predicted. The trade association forecasted that gross mortgage lending will grow by 1.4% to £268bn in 2020, rising to £275bn in 2021, with the rise largely being driven by lending for house purchases. However, the report stated that the modest growth predicted will also partly rely on Britain’s ability to negotiate a trade deal with the EU. Mortgage lending fell by between 1-2% in 2019, reaching an estimated £264bn. Kate Davies, executive director of the Intermediary Mortgage Lenders Association, said: “The next two years certainly look positive for the mortgage market.