Mortgage lending increases

Despite tales of lenders refusing mortgage applications, figures released today (Thursday, May 22nd) showed that mortgage lending has risen slightly.

According to the Council of Mortgage Lenders (CML), gross mortgage lending in April was up five per cent from March although it was 16 per cent down from 2007 levels.

The CML's forecast shows that although the market is experiencing a downturn, they do not expect it to be as significant as was predicted.
Michael Coogan, CML director general, commented: "Our forecasts assume some indirect benefits from the Bank of England special liquidity scheme beginning to have an effect in the mortgage market in the later part of the year."
A reduction in interest rates is proving beneficial for some borrowers and CML say that "lenders are working hard to ensure that borrowers coming off fixed rates remain on track".
Lenders are also keen to give financial support to self-build properties, according to online portal, homebuilding.co.uk.

Jason Orme, editor of homebuilding, suggests the in-built equity that self-build properties have makes them an attractive prospect for mortgage lenders.

Mortgages News posted on 22/05/2008 17:11:24