Mortgage activity has improved, says CML

Date:Wednesday 2nd September 2009
Author: Max Freedman

Mortgage activity has improved from the low levels of turnover that were in place at the beginning of the year, according to an expert from the Council of Mortgage Lenders (CML).

Paul Samter, an economist with the organisation, made his comments after the Bank of England issued its latest approvals data.

According to the figures, the number of loans for home purchases rose by five per cent from June to stand at a total of 50,123.

Mr Samter said: "Activity still remains weak, but has improved from the historic low levels of turnover at the beginning of the year. We expect volatility in net lending levels over the rest of the year."

Another factor that can play a role in lending activity is the base rate of interest, which currently stands at 0.5 per cent.

The Bank's Monetary Policy Committee is set to take its next decision on whether to raise, lower or maintain the rate on September 10th.