Thu, 22 Jul 10
Gross residential mortgage lending rose by 15% between May and June, according to latest Council of Mortgage Lenders (CML) figures.
The CML says that gross mortgage lending totalled £13.1bn in June, compared to £11.4bn in May. The figures are also up on figures released in June the previous year, by 7%.
Gross mortgage lending during the second quarter of 2010 was worth an estimated £35bn, up 17% on £30bn during the first quarter of the year and up 7% on the second quarter of 2009.
CML economist Paul Samter described these latest figures as a “seasonal pick up” but says gross mortgage lending is still at a historically low level.
He added: “There are signs of house prices stabilising and more properties coming onto the market following the abolition of home information packs.
“This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained.”
He also said that recent measures outlined by the Financial Services Authority to tighten lending criteria could make it harder for borrowers to access credit – see Home News 16 July 2010.
By Joe Lepper
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