CML: Mortgage approvals higher in May

| July 12, 2011 | 0 Comments

The Council of Mortgage Lenders (CML) has reported that the number of loans for house purchase rose in May.

According to the Council, there were 41,500 loans worth £5.9 billion advanced for house purchase in the month, up from 40,800 in April.

However, the figure remains lower than the 43,800 loans advanced in May 2010.

Meanwhile, remortgaging increased in May, up by 1.7% on a monthly, basis but 5% lower when compared with May 2010.

The CML also highlighted that first-time buyer loans remain low with just 15,900 approvals in May, totalling £1.9 billion.

This compares with 16,300 first-time buyer loans, worth £2 billion, in May last year.

Since the credit crunch almost four years ago, lending criteria has tightened and first-time buyers, in particular, have struggled to get a foot on the property ladder, unless they have a deposit of at least 25%.

In other news today, the Royal Institution of Chartered Surveyors (Rics) has reported that the UK housing market remained weak in June with house prices falling more than expected.

According to the Institution, homeowners remain reluctant to put their properties up for sale, while buyers remain uncertain about the economic climate.

These factors, together with the ongoing mortgage rationing, mean the housing market is expected to remain subdued for some time to come.

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