CML: Mortgage lending up in June

| August 10, 2011 | 0 Comments

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

According to the Council, there were 46,700 loans advanced for house purchase in the month – a rise of 22% compared with the previous month but 11% lower on an annual basis.

However, despite the annual fall, the CML said it was encouraged by the latest figures.

Meanwhile, of the 46,700 loans, 18,100 were provided to first-time buyers – a rise of 24% on May’s figure.

First-time buyers have to put down an average deposit of 20% in order to secure a mortgage, according to the Council.

Commenting on today’s figures, Paul Smee, director-general of the CML, said: “Recent increases in Bank of England approvals figures also show that more completions are expected in July, so the more encouraging numbers may persist for a while.”

Remortgaging remained unchanged over the month, with 30,700 loans worth £3.8 billion advanced to homeowners.

Remortgaging has remained subdued during the historically low interest rate environment but soaring inflation over the last few months has led to speculation that interest rates will be lifted.

In other news this week, the Royal Institution of Chartered Surveyors (Rics) said the UK housing market remained weak in July with house prices falling further.

The Rics report said 22% of surveyors reported house prices fell rather than rose. While this represents a marginal rise on June’s figure, the reading has been in negative territory for more than a year.

Finally, surveyors remain negative about the direction of future house prices with 13% more surveyors expecting prices to fall rather than gain over the next quarter.

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