CML: Mortgage lending sees slight rise in February

| April 8, 2011
CML: Mortgage lending sees slight rise in February

The Council of Mortgage Lenders (CML) has today reported mortgage lending increased in February.

Mortgage lending rose by 8% in February on a monthly basis but was down 12% on the year.

There were 32,300 approvals during the month with first-time buyers making the biggest contribution with 12,400 mortgages worth £1.4 billion.

First-time buyers are crucial to the housing market and have been struggling to get a foot on the property ladder unless they have a substantial deposit.

Bob Pannell of the CML comments: “The February fall in lending compared to last year was despite the fact that lending in the early months of 2010 was itself depressed following the end of the earlier stamp-duty concession.

“But research suggests cash purchases have remained steady since the credit crunch, indicating that the housing market may be holding up better than the low mortgage lending levels suggest.”

In related news, the Bank of England recently revealed mortgage approvals rose in February.

According to the Bank, there were 46,967 loans approved in the month, up from January’s 46,152.

Furthermore, the British Bankers’ Association (BBA) revealed a slight rise in the number of new mortgages approved by the major banks in February.

According to the BBA, the number of new mortgages approved in the month stood at 29,923 – marginally better than January’s level of 29,159.

However, according to experts, the housing market is expected to remain subdued in 2011, due to uncertainty surrounding the economy and the ongoing mortgage rationing by lenders.

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