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Gross mortgage lending up 10% in a year

Gross mortgage lending up 10% in a year

Category: Mortgages

Updated: 20/09/2011
First Published: 20/09/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Gross mortgage lending was up by 10% in August compared with the same point in 2010, figures from the Council of Mortgage Lenders (CML) have revealed.

The body said that gross mortgage lending totalled an estimated £13.4 billion last month, a rise of 6% from £12.6 billion in July and up 10% from £12.1 billion in August 2010.

Encouragingly, it is the highest monthly total since July 2009 (£14 billion) and the highest monthly total for August since 2008 (£19.3 billion).

Chief economist at the CML, Bob Pannell, said that despite the uplift in gross lending in August the underlying picture remains one of 'activity levels that continue to be subdued but broadly stable'.

"The August performance more or less offset the weaker than expected July figure," he added.

"Taking July and August together, lending has shown little change on the same months of 2009 and 2010."

In the CML's monthly market commentary, it said that despite economic uncertainties at home and abroad, mortgage offers remain relatively attractive.

It was also noted that, despite subdued consumer demand, there are no signs of significant falls in house prices.

"While current survey data suggests that house prices nationally may be drifting modestly lower in nominal terms, the prevailing view among economists – as reported in HM Treasury's Forecasts for the UK economy - is for house prices to stabilise through 2012 and then revert to positive growth of 4-5% per annum (broadly in line with likely earnings growth) from 2014 onwards," it added.

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