Data issued by the Council of Mortgage Lenders (CML) saw the number of mortgages loaned to house buyers fall in August by 13 per cent, BBC News has reported. The CML stated that, compared to July?s total mortgage lending figure of ?14.5 billion, August saw mortgage lending reach ?12.6 billion.
Although this year has seen an upturn in the number of mortgages loaned to property buyers, house sales and prices, the Bank of England remains cautious about the property market. The Bank?s Trends in Lending report stated: ?There has been no increase in the proportion of lending accounted for by mortgages with loan to value ratios (LTVs) of greater than 90 per cent. The major UK lenders remained cautious about prospects for house prices and unemployment.?
The Bank did, however, also report on the fact that mortgage application approval rates were up from 70 per cent at the start of 2009 to over 80 per cent currently.
September has seen increasing signs that the housing market is on the road to recovery. House prices have started to rise for the first time since 2007, according to surveyors last week, and the National Association of Estate Agents (NAEA) has noted a return of first-time house buyers to the market.
CML economist Paul Samter commented: ?The likelihood of a significant pick-up in lending remains weak, but the prospects for wholesale funding markets are improving. This could result in a gradual easing in constraints on the supply of funding over time. However, demand from consumers and a prudent approach to lending criteria are likely to mean that the market remains subdued.?
