Mortgage lending market stabilising
Published: 11 August 2009 By MoneyhighStreet Staff Leave a Comment
According to the latest data from the CML (Council of Mortgage Lenders) the mortgage lending market is showing signs of stabilising.
However, whilst it’s encouraging to see some positive signs for the mortgage market, it is still weak and is improving from very low levels.
Mortgage lending was up 23% in June compared with May. But at 45,000 house purchase loans this is still half the average number of June loans over the last 7 years.
Remortgages increased by 13% to 34,000 loans in June.
Overall though the second quarter saw a 21% fall in remortgages compared with the first quarter. This being the result of low interest rates reducing the demand for remortgaging.
Fixed rate mortgages took up 78% of new mortgage lending in June, although this is considered to more supply driven than anything else.
CML economist Paul Samter commented ‘Low interest rates and realistic selling prices have helped generate a welcome increase in transactions.’
He added ‘There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels.’