CML: August gross mortgage lending drops to £12.6bn

Posted: 21 Sep 2009 11:05:23 GMT

Estimated gross mortgage lending in the UK totalled £12.6 billion in August, according to the Council of Mortgage Lenders (CML).

This was 13 per cent down on July's revised figure of £14.5 billion and 37 per cent lower year-on-year.

A statement from the CML revealed that a seasonal fall in lending activity is usually expected in August.

Assessing the current situation in the council's monthly market commentary, CML economist Paul Samter said that it remains unlikely that there will be a significant pick-up in lending, although "the prospects for wholesale funding markets are improving".

He added that this could result in "a gradual easing in constraints on the supply of funding over time", but it is likely that the market will remain subdued for a while.

The general consensus is that the drop in mortgage lending witnessed over the last 18 months has stabilised.

Indeed, the National Association of Estate Agents suggested earlier this month that there is more confidence in the property market than at the start of the year.


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