Mortgage lending up 14% in December

Date:Thursday 21st January 2010
Author: Suzanna Kavka

The amount of money given out by mortgage lenders in December was 14 per cent higher than in the previous month, it has been reported.

According to the latest figures from the Council of Mortgage Lenders (CML), gross mortgage lending hit £13.7 billion last month, which was a marked increase on the £12.1 billion recorded for November 2009.

It is the first time that there has been positive growth in lending month-on-month since October 2007, but, except for 2008, the numbers are still the lowest December total since 2001.

CML economist Paul Samter commented: "Evidence suggests that the rise was driven by a surge in house purchase completions - as remortgaging still remains exceptionally weak."

This opinion may well be driven by the evidence from the CML that in November mortgage borrowers needed less of their income to cover their interest than at any other point in the past five years.