Gross mortgage lending is at its highest level in six months according to the CML (Council of Mortgage Lenders), although the latest quarter figures are still one of the lowest quarterly figures over the last eight years.
It seems experts are still cautious as these figures show the difficulty in determining how far the mortgage market has actually come.
From £9.9 billion of gross lending in February this year, to £10.5 billion in May and now £12.3 billion in June, the figures are rising only slightly. From the £23.8 billion in June last year though, it is easy to see the volume is still much lower than 2008.
The latest rise could be attributed to seasonal changes, helping to boost mortgages for the next few months of the summer, predominantly a popular time for remortgaging and moving property.
The CML still did not change its forecast for the year and experts continue to believe the lack of affordable mortgages from the major mortgage lenders may continue to dampen house moves.
These thoughts come despite several recent marketing moves from major lenders, which many are branding as ‘mortgage gimmicks’ such as the new Easy Step mortgages from Lloyds TSB, which gives a lower interest rate for the first few months to help borrowers cover moving costs.