Lending will reach £286.8bn in 2019
The report predicted lending to stand at £218bn this year before rising to £241.6bn in 2016 and sharply increasing by 11.7% £286.8bn in 2019.
Ben Carey-Evans, analyst at Timetric, said: “Rising interest rates, combined with reduced growth in the UK housing market, is set to stunt increases somewhat from the 15% and 22% rates seen in 2014 and 2013 respectively.
“Improving economic conditions, however, particularly the continuation of improving real wages – due to extremely low inflation – should see gross lending rising at a steady rate up to 2019.
“Growth in the mortgage market will be supported by rising house prices necessitating larger-value loans, and regional variations in house prices will continue to influence the distribution of mortgage lending.”
Outstanding mortgage balances are expected to grow at a slower pace, as total outstanding balanced should reach £1.39 trillion in 2019, up from £1.33 trillion by the end of 2019.