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Upward turn in mortgage lending

Mortgage lending rises to £16 billion in July


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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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If you’re thinking of buying a new home, or simply remortgaging your current home, check out Which? Best Buy mortgages or use the Which? mortgage finder to search for and compare the best mortgage deals for you.


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