Mortgage lending increases for fifth month in a row

 

Mortgage lending increased year-on-year for the fifth month in a row in December, a key trade association said today, but prospects for the housing market in the year ahead are still “difficult to call”.

Gross mortgage lending in December was an estimated £11.7 billion, the Council of Mortgage Lenders (CML) said, which is a 12% drop from November but a 12% rise from the previous December.

This means mortgage lending for the whole of 2011 came in above the CML forecast at £140 billion, up 3% from £136 billion in 2010.

CML chief economist Bob Pannell said: “Continuing eurozone problems mean that mortgage funding prospects are uncertain, so overall UK mortgage market conditions for the year ahead remain difficult to call.”

The drop in lending between November and December was amplified by the smaller number of working days in the month, the CML added.

Lending was up 11% year on year in the final quarter at £37.3 billion, the association added.

Mr Pannell said: "The closing months of 2011 saw stronger mortgage lending activity and housing transactions, despite the fact that short-term economic prospects are challenging."

The CML recently reported a pick-up in lending in November as the number of homeowners taking up fixed-rate deals hit the highest level in more than two years.

Mortgage providers - such as Nationwide and the Post Office - have slashed rates on a range of fixed-rate mortgages as the Bank of England continues to hold its base rate at a historic low of 0.5%.

PA

Independent Comment
blog comments powered by Disqus
Career Services

Day In a Page

Can we pull the plug on the plug?

Can we pull the plug on the plug?

Wireless power is beginning to surge its way into homes, businesses and garages
The 10 Best Lecture Series

The 10 Best Lecture Series

From Intelligence Squared - possibly the world's premier debating forum - to the ICA Talks
Still making a big noise: A season of Michael Frayn plays is set to reaffirm the brilliance of his work

Michael Frayn: Still making a big noise

A season of Frayn's plays is set to reaffirm the brilliance of his work
'You could have a job like mine': How successful alumni can inspire pupils

How successful alumni can inspire pupils

Hilary Wilce sees an innovative scheme in action at a London comprehensive
The tuition paradox: You pay more money, you get less choice

The tuition paradox

You pay more money, you get less choice
The rivals: Canberra's political hate story

The rivals: Canberra's political hate story

Six years ago, Kevin Rudd was ousted as Australian PM by former ally Julia Gillard. Is he about to get his revenge?
Menswear finds its swagger to escape role as poor relation of British fashion

Menswear finds its swagger...

... and escapes role as poor relation of British fashion
'There was someone who needed it...' 60 lives, 30 kidneys, all linked in longest donor chain

60 lives, 30 kidneys, all linked in longest donor chain

Organ donation to stranger starts an amazing series of events across 11 US states
The ad that only plays to women: the future of marketing or useless gimmick?

The ad that only plays to women

The future of marketing or useless gimmick?
Sam Wallace: Chelsea's class of 2012 fail to make the grade

Sam Wallace

Chelsea's class of 2012 fail to make the grade
Lewis Moody: My five ways England can bring down the red curtain

Lewis Moody column

My five ways England can bring down the red curtain
Picture preview: Charline von Heyl, Tate Liverpool

Charline von Heyl, Tate Liverpool

Picture preview
Slow progress in Christchurch one year after quake

Christchurch a year on

Residents mark the first anniversary of the earthquake
Niceness rocks! Ballads take centre stage at the Brits

Niceness rocks!

Ballads take centre stage at the Brit Awards
Robert Fisk: 'If only hague and clinton would listen to yusuf islam'

Robert Fisk

'If only Hague and Clinton would listen to Yusuf Islam'