May recovery in mortgage lending - Mortgages - News - Moneyfacts


May recovery in mortgage lending

May recovery in mortgage lending

Category: Mortgages

Updated: 21/06/2012
First Published: 21/06/2012

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 It is now over 6 months old so the content may be out of date.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 in May increased by 24% from the previous month, figures released today reveal.

The end of the Stamp Duty holiday on 24 March caused a first-time buyer rush to secure a mortgage, resulting in a 30% rise in lending to £13.4 billion in March, according to the Council of Mortgage Lenders' (CML) figures.

In April, however, lending dropped to £9.9 billion, but these latest figures reveal a recovery in lending to £12.2 billion for May.

Lending had increased by 13% from May 2011 when the figure was £10.8 billion.

These latest positive figures follow news last week that the Government has pledged to boost lending to small businesses and consumers by £80 billion.

"The Government has recently announced a number of measures to counter the adverse effects from the Eurozone crisis. It clearly senses an opportunity to bolster home ownership and housing activity, and we look forward to hearing more details about the 'funding for lending' initiative which seeks to deliver this," said the CML's chief economist Bob Pannell.

Mr Pannell warned that more fluctuations in lending were likely to appear this year.

"Meanwhile, mortgage lending continues to seesaw, albeit against a broadly flat market," he added.

"Unfortunately, a number of one-off factors, such as the Diamond Jubilee and the Olympics, are set to distort market indicators over the coming months, and it may be the autumn before we can more accurately gauge the state of the market."

Find the best mortgage rate - Compare best selling mortgages

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 Any products featured may be withdrawn by their provider or changed at any time.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.