CML: Mortgage lending remains weak

Date:Wednesday 22nd July 2009
Author: Susanna Kavka

Mortgage lending in the UK remains weak, according to the Council of Mortgage Lenders (CML).

It noted that there have been signs recently the country may be past the worst period for the housing market and the wider economy and that house prices appear to be more stable.

However, the organisation added that lending volumes remain low.

It said: "A small increase in house purchase activity has been offset by low remortgaging levels.

"Despite media reports, there is little evidence that borrowers, in aggregate, are taking advantage of low interest rates to pay down mortgage debt."

The CML made its comments as part of its monthly market commentary, which is intended to provide analysis concerning the latest developments in Britain's mortgage and housing market.

With a membership comprising banks, building societies and other mortgage lenders, the CML is the trade association for the mortgage lending industry and it aims to foster favourable operating conditions for firms.