Mortgage lending falls away in July

A mini revival in the mortgage market fell away during July amid a "subdued" property sector, the Council for Mortgage Lenders said yesterday.

Gross lending was estimated at £12.6bn in the month, 1 per cent lower than in June and 6 per cent down on a year ago, the CML said. Lending in June hit its highest level for nearly a year as landlord activity in the buy-to-let market picked up. But July saw lending fall back and the housing market now looked "stable at best".

The organisation also warned that remortgaging could be disrupted by the eurozone crisis, which has an impact on wholesale funding markets.