Member Article

Mortgages rise, but factors "hold back" any significant recovery

Mortgage lending rose by 17% between May and June, according to the Council of Mortgage Lenders (CML).

There was an estimated £12.3bn worth of lending in June, which is a 48% decline from the same time last year, which saw £23.8bn in mortgages.

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

“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.”

Gross lending in the second quarter of 2009 was estimated at £33.3bn, the same as the first quarter, which was the lowest quarterly reading since 2001’s first quarter.

Despite last month’s rise, the CML has kept its 2009 forecast of mortgages grossing £145bn, with July’s estimated figures due to be released on the 20 August.

This was posted in Bdaily's Members' News section by Ruth Mitchell .