Mortgage market to remain flat - Mortgages - News - Moneyfacts

News

Mortgage market to remain flat

Mortgage market to remain flat

Category: Mortgages

Updated: 20/06/2011
First Published: 20/06/2011

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 It is now over 6 months old so the content may be out of date.

The amount of mortgage lending carried out picked up in May, but is expected to remain flat for the rest of 2011.

Figures from the Council of Mortgage Lenders (CML) show that around £11.3 billion was lent to homebuyers last month, a 12% rise on April (£10.1 billion).

However, comparisons with April are misleading as the Royal Wedding and back-to-back bank holidays made for a particularly quiet month.

The May figures mean that lending returned to a similar level as was recorded in March.

The housing market has struggled to build any meaningful momentum in 2011 so far, and the CML said that homeowners are now less likely to remortgage their homes, as the prospect of a rise in the base rate has fallen.

Weak activity in the housing market reflects uncertainty about the wider UK economy, with a growing number of young people giving up on the hope of owning their own home in the near future.

The CML said that 'stripping away seasonal effects, the underlying position has essentially been flat for the past two years'.

Michael Coogan, director general at the CML, said the May figures had been helped by low levels of activity in April.

"Distorting effects from Easter and bank holidays cloud the current picture, but the likelihood seems to be for essentially flat levels of lending over the next couple of months," he added.

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 Any products featured may be withdrawn by their provider or changed at any time.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

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On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market.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.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close