Mortgage lending up 17% in June

21 July 2009 / by Andy Davies

Mortgage lending in June increased by 17 per cent compared to the previous month, according to mortgage lenders.

Gross mortgage lending in June is estimated to have totalled £12.3billion, according to figures published by the Council of Mortgage Lenders (CML), a £1.8billion increase on lending in May.

However, despite this increase, the data still represents a 48 per cent decline on June 2008, when mortgage lenders handed out £23.8billion.

The figures also show that lending for the second quarter of 2009 totalled an estimated £33.3billion, which is the lowest quarterly reading for eight years.

Commenting, Paul Samter, economist at the CML , 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," he added, "Our forecast for gross mortgage lending of £145 billion this year is unchanged."

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