CML assesses new data on mortgages

Posted: 02 Sep 2009 09:22:51 GMT

The Council of Mortgage Lenders (CML) has claimed that the Bank of England's latest data on mortgages is in line with its overall forecast on lending for 2009.

According to the Bank, there was a negative net lending figure in July of -£418 million, which would suggest that the council's annual forecast of -£5 billion could be reached.

Mortgage approvals for the month were up to 50,123, which the CML said represented a five per cent growth on June's figures.

CML economist Paul Samter remarked: "Activity still remains weak, but has improved from the historic low levels of turnover at the beginning of the year."

Although volatile figures are expected for the rest of 2009, he added, the CML believes the Bank's data is consistent with the organisation's view that there is a "slowly improving house purchase market" held back by the fragility of the economy.

Last month, the CML indicated that the slowdown in the buy-to-let mortgage sector had declined. In a statement, the body suggested that this part of the industry had now stabilised.


© Houseladder Ltd