Mortgage lending up in June

According to the latest report from the CML (Council of Mortgage Lenders), gross mortgage lending in June was up 17%, but it’s still 48% down compared to June 2008.

Gross mortgage lending was up in June at £12.3 billion, compared to £10.5 billion in May.

This is still a massive 48% down on June 2008 and whilst it’s good to see a month on month rise, it might not be as good as it first seems.

As CML economist, Paul Samter, says ‘the pick-up in June’s lending largely reflects seasonal factors’.

Much concern remains over the amount mortgage lenders are lending and restrictions that generally remain, making it difficult for many to access mortgage funds.

An easing of lending is required from the lenders if the housing market is to get the boost it needs to make a sustained recovery.

But of course risk has to be balanced by the lenders.

But so too does risk have to be balanced by prospective house buyers. As the recession continues and concerns over unemployment in particular rise, it will limit the amount of house buying and selling activity anyway.

It seems the housing market activity could remain low for some time to come.