Mortgage lending up 26%

| August 20, 2009 | 0 Comments

The Council of Mortgage Lenders (CML) has reported that gross mortgage lending increased 26% in July, compared with June, hitting an estimated £16 billion.

The lenders’ body describes the surge as further evidence of a “modest improvement” in the UK housing market over the summer months and suggests house purchase activity will have been behind the rise, rather than remortgaging activity.

However, the total represents the lowest July lending figure since 2001 and lags £11 billion below the £27 billion July average over the previous seven years.

CML economist, Paul Samter, cautions that in addition to being seasonal in nature, the bounce-back reflects the “extreme weakness” of the market around the turn of the year.

He believes a further significant improvement is unlikely this year and expects some seasonal slowing in both lending volumes and housing transactions over the latter part of 2009.

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