Mortgage rise recorded by CML

Posted: 15 Apr 2009 12:36:49 GMT

Monthly lending figures have shown a rise in the number of mortgages lent between January and February this year, according to the Council of Mortgage Lenders (CML).

The organisation published research showing a four per cent rise in the number of home loans lent out in February, as the total figure reached 24,300.

In January this year the figure was just 23,400.

In February, 9,400 loans were taken by first-time buyers, representing a seven per cent increase on the previous month's figures and offering many market watchers a glimmer of hope that new buyers will be able to stabilise the property market.

Commenting on the CML figures, Louise Cuming, head of mortgages at moneysupermarket.com, said that there were still issues to be solved.

She said: "The key issue in the mortgage market at the moment is the supply of mortgages, not demand.

"Whilst the slight increase in lending month on month is good news, the demand for mortgages from customers still outstrips the willingness of lenders to lend."

The CML itself acknowledged such a sentiment, as although the monthly increases are encouraging, the figures for February nevertheless represent a 47 per cent decline in the number of mortgages lent year-on-year.


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