Mortgage lending showing 'signs of stabilisation'
Mortgage lending showing 'signs of stabilisation'
Tuesday 11th August 2009
The mortgage market is beginning to show signs of stabilisation with a 23 per cent rise in purchase loans from May to June.However, the Council of Mortgage Lenders (CML) warned their figures were still weak on a historic basis, with less than half the average number of loans in June over the last seven years.
The June figures showed there were 45,000 house purchase loans, worth £5.9 billion, up from 36,500 loans in May.
The CML said there was a total of 116,700 mortgages advanced in the second quarter of this year, a 50 per cent increase on the previous quarter but down 22 per cent on the second quarter in 2008.
CML economist Paul Samter said: "Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity.
"There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels."
The number of remortgages increased 13 per cent from May to June, with loans to first-time buyers at 17,200 for the month, up from 13,700.
The Royal Institution of Chartered Surveyors (Rics) also noted positive signs for the housing market today, but equally warned caution.
Rics spokesperson Jeremy Leaf said: "Although demand for property is continuing to rebound, it still remains low from a historical perspective."
Related News
Renewed optimism in housing market despite low supply - 11/08/09
Optimism in the UK housing market is continuing to improve, despite low stock levels
Optimism in the UK housing market is continuing to improve, despite low stock levels
Footballer launches site to prevent players being ripped off - 10/08/09
A footballer has launched a site to prevent fellow players from being ripped off
A footballer has launched a site to prevent fellow players from being ripped off
Heathrow traffic up 0.9 per cent - 10/08/09
Heathrow experienced one of its busiest ever months in July, with traffic up 0
Heathrow experienced one of its busiest ever months in July, with traffic up 0
Record insolvencies up 27.4% - 07/08/09
There has been a record 33,073 insolvencies declared over the second quarter of this year
There has been a record 33,073 insolvencies declared over the second quarter of this year
Poorest shoppers 'hit hardest' says watchdog - 07/08/09
One in ten consumers is not getting the goods or services they pay for in advance, a watchdog has said
One in ten consumers is not getting the goods or services they pay for in advance, a watchdog has said
News Article Search
Quick Apply
News Archive