CML: Mortgage lending figures continue to grow

Date:Thursday 29th October 2009
Author: Max Freedman

The Council of Mortgage Lenders (CML) has noted that the Bank of England lending figures for September show an increase in the amount of lending taking place.

Paul Samter, an economist at the CML, commented that the Bank's figures show that the housing market is gradually getting stronger.

He pointed out that the state of the mortgage industry is significantly better than it was a year ago, while the remortgaging market continues to flounder.

According to Mr Samter, this is down to borrowers choosing to stay on "low reversion rates".

"We are cautious about how far we can expect it to continue increasing, with funding still a challenge and the economic outlook still subdued," he said.

In his view, many mortgage applicants have stayed on their current deals because the Bank's base rate is likely stay low for the foreseeable future.

The Monetary Policy Committee will vote on November 5th to decide if the base rate will be amended from its current 0.5 per cent, which is a historic low.