The upcoming general election is set to add complexity to the mortgage market, according to OneSavings Bank.
The Council of Mortgage Lenders, revealed that gross mortgage lending in March 2017 was 19% lower than the ?£26.3bn lent in the same period last year.
The significant drop was expected as last year saw a significant rise in activity as borrowers rushed to beat the second property stamp duty deadline which came into effect last year.
John Eastgate, sales and marketing director of OneSavings Bank, has responded to the results by looking at what's in store for the market.
“Mortgage activity may have dipped in the first quarter and the forthcoming election will clearly add some complexity to the year, but the last few years have demonstrated very clearly that the mortgage market can negotiate even the trickiest political landscapes, so with interest rates looking set fair to stay low, relatively strong levels of demand will persist.'
“Long-term constraints still provide a note of caution.
“Demand still outweighs supply, adding pressure to the purchase market.
“The LISA [Lifetime Isa] may support demand in the long-term assistance, but if we don't see supply increase, then affordability stretch will remain the stumbling block for prospective buyers.'
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