Mortgage lending ‘weighed down’ in August - Mortgages - News - Moneyfacts


Mortgage lending ‘weighed down’ in August

Mortgage lending ‘weighed down’ in August

Category: Mortgages

Updated: 12/10/2012
First Published: 12/10/2012

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 It is now over 6 months old so the content may be out of date.

Overall lending was suppressed by continued poor levels of remortgage lending during August, with just 22% of gross lending during August advanced to remortgage borrowers.

The combination of low remortgage and the subdued housing market, pushed overall lending down by 2% compared with August 2011.

Customers purchasing homes provided some welcome relief, however, according to the Council of Mortgage Lenders (CML).

A total of 55,300 house purchase loans were advanced, equating to £8.4 billion, up by 12% compared to the previous month.

CML director-general Paul Smee, suggested that the Government's lending initiatives could create some positivity over forthcoming months.

"House purchase lending showed an encouraging rise in August, but it's unclear whether this reflects just the unravelling of previous factors such as the Jubilee and the Olympic Games, or a shift in the underlying picture," he said.

"We will wait and see whether schemes such as Funding for Lending and NewBuy provide a further boost to the market in coming months."

What next?

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 Any products featured may be withdrawn by their provider or changed at any time.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

The time is now for remortgaging

Mortgage borrowers have been urged to review their existing deals after it was revealed that remortgage opportunities continue to flourish in the post-Brexit vote world.

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.