Million pound mortgage sales rise by 24%

Residential mortgages sales worth over £1m went up by 24% last year, research from Lendy has revealed.

The number of new £1m-plus mortgages written by banks last year increased to 4,844, up from 3,896 in 2015, with the total value rising by 18% over the same period.

These figures come as Lendy discovered outstanding bank lending to developers fell 7% in 2016 to £14.8bn.

Liam Brooke, co-founder of Lendy, said: “Housing targets will continue to be missed unless banks allocate more money to developers who build multiple homes at rapid rates.”

Lendy believes that the UK’s housing crisis could worsen if banks continue to favour owner-occupiers over property developers.

Brooke added: “As the balance of lending shifts to the owner occupiers’ favour, it is smaller developers that are losing out.

“It is these small and medium sized developers especially that have found it hard to get funding from banks since the financial crisis.

“Peer-to-peer platforms such as ourselves are contributing more and more in getting new developments off the ground.”

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Written by: Houseladder