Mortgage lending figures up

New data has shown that mortgage lending was up 26 per cent in July.

Council of Mortgage Lenders (CML) statistics showed that home loans worth £16 billion were issued last month, compared with £12.7 billion in June.

However, the figure for the month was still 36 per cent down on July 2008.

The total may suggest that the supply of mortgages is continuing to rise.

Reflecting on the findings, CML chief economist Paul Sumner remarked that the increase has taken place in the context of low levels of activity in previous months and may be hard to sustain.

He said the CML expects “the picture of a slow but more stable market to emerge” in the next few months.

Chief executive of the National Association of Estate Agents Peter Bolton King suggested the figures do indicate that “confidence is returning”, but argued lenders need to issue a greater number of home loans to ensure the recovery is more substantial.

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