Mortgage lending up this month

Figures released today by the UK's Council of Mortgage Lenders (CML). show that gross mortgage lending rose 17% between May and June, up from £10.5billion to £12.3billion.

However in comparaison to last year lending for the month was 48% down from June 2008, when it was £24.8billion. Gross lending in the second quarter of 2009 was £33.3billion, unchanged from the previous quarter, and the lowest quarterly reading since the first quarter of 2001.

CML economist Paul Samter said “The pick-up in June’s lending largely reflects seasonal factors, and these may well support lending volumes at moderately higher levels over the rest of the summer. But the combined effects of the restricted nature of mortgage funding, reduced number of active lenders, weak labour market and limited consumer demand are likely to hold back any significant and underlying improvement. Our forecast for gross mortgage lending of £145 billion this year is unchanged."