Annual mortgage lending will reach £320bn in 2020 – rising from £209bn in 2015, business information service Timetric has predicted.
It forecasted an average growth rate of 6.8% over the next five years with considerable growth of 11.7% in 2017 because of an anticipated hike in house prices that year.
In 2015 lending grew by 29.4% while mortgage lending reached £209bn based on a Council of Mortgage Lenders estimate.
Ben Carey-Evans, Timetric analyst, said: “The mortgage market stabilised earlier in 2015 due to greater employment and stamp duty reforms.
“These trends continued, and combined with record low interest rates and inflation were the driving force behind the surge in lending in the latter part of the year.”
The report said an interest rate rise is unlikely to suppress the market over the next five years.
Carey-Evans added: “With the demand for mortgages being so high, any interest rate hike is unlikely to lead to a decline in gross mortgage lending, although repayments are more likely to drop off as customers begin to struggle to make them.”