Mortgage market sees 5% boost


The number of house purchase loans rose by 5 per cent in July in a further sign of gradual improvement in the mortgage market, lenders said today.

There were 49,500 loans advanced for house purchase in the month worth £7.6 billion, while remortgage loans rose by 3 per cent to 24,100, the latest figures from the Council for MortgageLending (CML) showed.

First-time buyer activity also remained resilient following the volatility in March and April after a two-year stamp duty concession for this sector came to an end.

A total of 19,000 loans were advanced to first-time buyers, a 1 per cent drop but stronger than the same time last year. These loans were valued at £2.5 billion.

CML director general Paul Smee said initiatives such as the Government's Funding for Lending and NewBuy schemes have the potential to help lending.

He added: "July's figures show a gradual improvement in the market with lending approaching the sort of levels we saw at the end of the stamp duty concession."


Looking for credit card or current account deals? Search here