Mortgage market ‘showing positive signs’

The UK mortgage market is revealing some reasons for optimism, the Council of Mortgage Lenders (CML) has said.

Figures from the body showed that September’s gross mortgage lending total was two per cent higher than the August figure, up to £12.5 billion from £12.3 billion.

The third quarter of this year saw an 18 per cent jump in lending from the previous three months at £38.9 billion, although this was still 36 per cent down on the same period in 2008.

Commenting on the situation, CML economist Paul Samter said there are underlying reasons to be upbeat.

He stated: “While the retail side, both in terms of mortgage and savings activity, has thrown up few surprises, it is encouraging that the wholesale markets have begun to thaw.”

Some commentators have said it is unlikely there will be any major improvements in the mortgage market soon.

Andy Pratt, the chief operating officer of mortgage brokerage Alexander Hall, stated that this would be the case despite several lenders trimming their rates in recent weeks.

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