CML reports rise in lending

Lending for house purchases increased four per cent in May, according to the Council of Mortgage Lenders (CML).

The CML reported that loans for mortgages rose by four per cent from April to 52,700, while the total value of loans increased by two per cent to £7.9 billion - giving the property market a well needed boost.

The number of loans to first time buyers also increased by four per cent from April to 19,200, however gross lending declined in May for the seven consecutive month to £24.5 billion - down six per cent from April and 22 per cent from May last year.

CML director general Michael Coogan said: "Lending levels continue to be lower than last year and any recovery is still some way away.

"We look forward to an early, positive report from the Crosby review on how the market should address these issues with the support of the tripartite authorities."

Fixed-rate mortgages also increased in popularity in May, accounting for 66 per cent of all new loans - despite lenders increasing rates.

Mortgages News posted on 08/07/2008 10:01:05