There is still not enough mortgage lending in the UK to meet demand

Date:Friday 24th July 2009
Author: Max Freedman

There is still not enough mortgage lending in the UK to meet demand.

This was the opinion recently expressed by Ray Boulger, senior technical manager at John Charcol, who also suggested that the situation is unlikely to change in the short term.

According to the expert, it is difficult to see an improvement in the supply of funds over the course of the next few months.

He added: "Demand for mortgages has increased and activity in the property market has increased as more people become confident that now is a good time to buy. There is just not the supply of funds available to satisfy all that demand."

However, Mr Boulger went on to say that he is expecting Northern Rock to return to the market and start lending on a more active basis shortly.

Figures released recently by the Council of Mortgage Lenders revealed that gross mortgage lending totalled £12.3 billion June, which was a rise from the £10.5 billion recorded in May.