Gross mortgage lending shows seasonal surge
The Council of Mortgage Lenders has reported a 17% increase in gross mortgage lending for June.
The figure rose to an estimated £12.3 billion, up from £10.5 billion in May but still registering a 48% decline on June 2008, when gross lending stood at £23.8 billion.
On a quarterly basis, gross lending in the three months to the end of June totalled around £33.3 billion, the value unchanged from the first quarter of 2009 and at a level last seen in the first quarter of 2001.
Commenting on the findings, CML economist, Paul Samter says: “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.”
However, Mr Samter adds: “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 Council is therefore standing by its 2009 forecast of £145 billion in gross mortgage lending in total.