UK mortgage market experiences seasonal boost
July 21, 2010 by Brendan O'Neill
News
The Council of Mortgage Lenders have announced that £13.1billion was advanced to borrowers throughout the month of June in the UK, an increase of 15 per cent on May, which is the greatest figure since December 2009.
However, this good news was tempered somewhat by the Bank of England, who revealed that approvals for mortgages stood at 48,000, down from the 51,000 rubber stamped in May.
The Bank said that restrictions on mortgage finance had constrained demand, and went on to add:
“Looking forward, the major UK lenders expect demand for secured lending to be flat over the rest of the year, partly reflecting weak confidence among potential homebuyers.”
It also expects mortgages to become slightly more expensive, as an increase in funding costs begins to exert ‘upward pressure’ on rates charged to customers. This will mean that it is more important than ever for anyone in the market for a home loan to find a suitable mortgage deal, preferably through a CeMAP qualified advisor who is best able to advise a borrower.
The figures show that after mortgage repayments, the levels of net lending have a little catching up to do on the figures for January and February; the total net lending for May stood at £1.2billion.
Paul Samter, an economist for the Council of Mortgage Lenders, commented:
“Transaction levels are subdued and likely to remain so while access to credit remains constrained.
“Our gross lending estimate of £13.1bn in June represents a seasonal pick-up and is higher than June last year.”
Written by
Brendan O'Neill
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