Mortgage lending bounced back in June
Tuesday 20 July 2010
Latest in Mortgages
Mortgage lending bounced back to a six-month high during June as the market enjoyed its traditional season boost, figures showed today.
A total of £13.1 billion was advanced during the month, 15% more than in May and the highest level since December last year, when lending levels were lifted by people rushing to beat the end of the stamp duty holiday.
But despite the increase, which left advances for the month 7% higher than in June 2009, the Council of Mortgage Lenders warned that activity was still subdued.
Lending levels for the second quarter were 17% higher than during the previous three months at £35.01 billion, although the figure remained down on the £38.49 billion advanced during the final quarter of 2009.
CML economist Paul Samter said: "Our gross lending estimate of £13.1 billion in June represents a seasonal pick-up and is higher than June last year, but is still indicative of low levels of activity.
"There are signs of house prices stabilising and more properties coming on to the market following the abolition of Home Information Packs.
"This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained."
The group has previously warned that its forecast for total advances this year of £150 billion is now beginning to look a "little optimistic".
Today's figures showing an increase in mortgage lending provide some rare good news on the housing market following a recent run of gloomy data.
Halifax reported that prices fell for the third consecutive month during June, as the market failed to pick up momentum following a subdued start to the year.
Other surveys have also shown that demand from new buyers is failing to keep pace with the number of properties now being put up for sale, relieving much of the upward pressure on prices.
Economists now generally expect house prices to be either flat for the rest of the year, or to lose the gains they made during the first half.
- 1 Join a collective to force down your energy bills
- 2 How to start your own internet business
- 3 Ten ways to earn a second income
- 4 More work needed on pension reforms
- 5 You may strike it rich playing oil explorer roulette
- 6 Time to move if you want full benefit of ISAs
- 7 Make money as a mystery shopper
- 1 How Koscielny became prince of the Emirates
- 2 Apple admits it has a human rights problem
- 3 Spotify: 1 million plays, £108 return
- 4 Six Grammys, five years off: Adele puts love before career
- 5 Lightning kills an entire football team
- 6 Police confiscate passport from Brooks' assistant
- 7 Nauru and Abkhazia: One is a destitute microstate marooned in the South Pacific, the other is a disputed former Soviet Republic 13,000km away, so why are they so keen to be friends?
- 8 I was born to be a killer. Every night I see the Devil in my dreams
- 9 Mark Steel: If religion is 'marginal', I'm the Pope
- 10 Rothschild loses libel case, and reveals secret world of money and politics
Free trial of new Independent iPad app
Get your daily dose of the best of British journalism, sponsored by American Airlines
Win a three-week coastal jaunt
Spend three weeks exploring every nook and cranny of gorgeous Atlantic Canada.
Amazing restaurant offers
Three glasses of free champagne and a special menu at 46 top London restaurants.
Latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Career Services
Day In a Page
No secularism please, we're British




Comments