House purchase loans 'on the rise'

Posted: 11 Jul 2011 13:35:02 GMT

May witnessed an increase in the number of loans for house purchases and remortgaging.

An increase in the number of loans for house purchases and remortgaging has been recorded for May.

According to figures from the Council of Mortgage Lenders (CML) - whose members account for around 94 per cent of residential mortgage lending in the UK - there was a total of 41,500 loans worth around £5.9 billion advanced during the month.

This was up from the 40,800 instances recorded in April and could be a sign that the mortgage market is beginning to stabilise.

However, the level is still lower than that seen 12 months ago, when 43,800 advances were reported for May.

CML director-general Michael Coogan said: "There is no evidence of any drastic changes on the horizon or any significant shifts in direction for the mortgage market. These stable conditions are expected to continue."

It is likely that seasonal factors will force lending for house purchase upwards across the coming months, he added.
 

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