Mortgage lending up in July

Posted: 20 Aug 2008 13:35:55 GMT

The latest figures from the Council of Mortgage Lenders (CML) have revealed that gross mortgage lending stood at £24.8 billion in July.

The association, which represents 98 per cent of all UK mortgage lenders, revealed that this was significantly lower than in the same month last year.

However, it added that gross mortgage lending had improved by five per cent from June, when it had dipped to £23.6 billion, the lowest monthly level so far this year.

Bob Pannell, head of research at the CML, said: "While there was a small month-on-month increase in activity, it represented a notable decline from a year ago."

He suggested that buyers will continue to play a cautious waiting game to see what happens to prices during the second half of 2008.

Meanwhile, independent price comparison site moneysupermarket.com has suggested that the current economic situation has made lenders much more transparent when it comes to homeowner loans.

Although headline rates have risen over the last 12 months average fees have declined considerably, making it clearer to buyers exactly what they will be expected to pay.

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