Mortgage lending continues to rise
Figures that were recently released by the Council of Mortgage Lenders have indicated that mortgage lending in the UK is continuing to rise following a very volatile eighteen months where lending levels plummeted.
Whilst lending levels are still far lower than in the past there are signs that lenders are easing up a little when it comes to offering mortgage finance, as has been reflected in the latest figures from the CML.
Figures from the CML showed that in the month of July gross mortgage lending stood at £16 billion, and this reflected an increase of 26 percent compared to the previous month, although it was still far lower than the same month last year.
Whilst the property and mortgage markets have experienced a slump over the past eighteen months both sectors are now starting to show some signs of recovery according to many industry experts.
Whilst the data from the CML is encouraging officials from the group have said that it is likely that the housing market will experience another dip later this year.
The group said: “The CML’s July gross lending estimate of £16 billion is the highest level in nine months and consistent with the rise in house purchase approvals. We anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge.”
The Bank of England recently stated in a report that there was little to suggest that banks were easing up on their restrictions.
The report stated: “In line with rising mortgage approvals, gross lending for house purchase has continued its recovery since the beginning of the year, but remortgaging activity remains very subdued. The major UK lenders reported that over the past month there had been no further increase in their appetite to lend at high loan-to-values.”
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