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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 It is now over 6 months old so the content may be out of date.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.

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