Consumers borrowed £16 billion in mortgage lending last month, up 26% since June, but still down on last year.
The latest increase was anticipated and represents further evidence of improvements in the housing market after a very poor winter for lenders, according to the Council of Mortgage Lenders. Nevertheless, it is still the lowest mortgage lending total for the month of July since 2001 and £11 billion down on the July average over the past seven years, which is £27 billion.
‘Further significant pick-up unlikely’
Paul Samter of the Council of Mortgage Lenders (CML) said: ‘The July gross lending estimate of £16 billion is the highest level in nine months and consistent with the rise in house purchase approvals. But the bounce-back in activity from the extreme weakness around the turn of the year, coinciding with the seasonal bounce, is limited in how far it can go against the current back-drop.’
‘We expect improved sentiment to support the market, but a further significant pick-up is unlikely with so many obstacles in place. As a result, we anticipate some seasonal slowing in lending volumes and housing transactions over the latter part of the year and the picture of a slow but more stable market to emerge.’
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