Mortgage lending up in May but outlook unclear
MORTGAGE lending rose slightly in May thanks to continued record low interest rates, the Council for Mortgage Lenders (CML) said yesterday.
It reported that 42,000 loans worth £6bn for house purchase were advanced in May, a 15 per cent increase on a year earlier. Remortgaging activity recovered a little as well in May, rising on the previous month but still down on the year. CML director general Michael Coogan said: “House purchase lending continues its recovery but positive comparisons with equivalent months a year ago look unlikely to continue. Activity picked up in the second half of 2009 due to the stamp duty holiday but with the government’s austerity drive picking up momentum we are unlikely to see a repeat of those buoyant numbers this year.”
He added that the CML’s 2010 forecast for gross lending in 2010 may now be looking a little optimistic.