Gross mortgage lending up 5% in July

Date:Thursday 19th August 2010
Author: Max Freedman

The total level of gross mortgage lending in the UK increased by five per cent during July, according to the Council of Mortgage Lenders (CML).

The group reported that during the month, £13.6 billion was loaned to house buyers, up on the £12.9 billion recorded during the previous month.

However, the figure is three per cent down on the £14 billion that was borrowed during July 2009.

While the CML admitted that it was a slow year for the market, the recorded figures are still on track for the £140 billion lending figures predicted for the year as a whole.

Economist for the CML Paul Samter said: "The rest of 2010 is likely to see rather lower lending and transaction numbers compared to the same period last year."

In a bid to encourage more people to borrow, several institutions have recently announced cuts to their rates, including the Post Office which is now offering a two-year fixed-rate at a cost of 3.94 per cent.