Home loan lending up - Mortgages - News - Moneyfacts


Home loan lending up

Home loan lending up

Category: Mortgages

Updated: 04/08/2009
First Published: 20/07/2009

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 It is now over 6 months old so the content may be out of date.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 by the UK's banks, building societies and other lenders increased again last month, according to new data from the Council of Mortgage Lenders (CML).

In total, an estimated £12.3 billion of home loans were lent to consumers in June, a 17 per cent increased compared to May, when lending stood at £10.5 billion.

However, despite the rises, figures are still historically low. Gross lending in the second quarter of the year finished at an estimated £33.3 billion, unchanged from the previous quarter, which was the lowest quarterly reading since the first quarter of 2001.

In the 12 months to June there was a 48 per cent decline from £24.8 billion in June 2008.

"The pick-up in June's lending largely reflects seasonal factors, and these may well support lending volumes at moderately higher levels over the rest of the summer," said CML economist, Paul Samter.

"But the combined effects of the restricted nature of mortgage funding, reduced number of active lenders, weak labour market and limited consumer demand are likely to hold back any significant and underlying improvement."

The CML year estimate for a total of £145 billion of gross mortgage lending remained unchanged.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Does your mortgage lender owe you money?

Earlier this week, the financial watchdog revealed that hundreds of thousands of mortgage holders could have been overcharged by their lender. Are you one of the many who could be in line for a windfall?

Do you think your home will rise in value?

There’s been a lot of talk recently about the rate of house price growth slowing, but is it affecting your personal expectations? According to research, it could be, with fewer people now expecting the value of their property to increase.

Confidence among “second steppers” is on the rise

We all know how difficult it can be taking that first step on the ladder, but what about the second step? In many cases, getting onto the next rung can be just as challenging, but happily, confidence among this cohort appears to be on the rise.