| CML reports 5% lending increase |
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| 20 August 2008 | |
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Gross mortgage lending totalled an estimated £24.8bn in July, up 5% from June, when it stood at £23.6bn, but down 27% from July 2007, when the total was £34.2bn, according to the Council of Mortgage Lenders. "While there was a small month-on-month increase in activity, it represented a notable decline from a year ago. This continues the weaker picture seen in June and points towards the more subdued levels of lending we are likely to see in the second half of 2008," said Bob Pannell, CML head of research.
“Lending still remains 27% down on a year ago and access to mortgages remains challenging. While banks are still in the process of repairing their balance sheets and as the securitisation markets remain effectively closed, mortgage lending is unlikely to recover in any meaningful way.
“Even though the base rate has come down by 0.75% since August 2007, those without higher deposits have seen little benefit, with many first-time buyers effectively shut out of the market. Despite the prospect of further interest rate cuts as the economy slows sharply into 2009, tighter lending standards look set to stay."
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