Mortgage and remortgage loans increase
Tuesday, 12 July 2011 3:05 PM
The number of loans for house purchase and remortgaging both increased in May, according to new data released today.
The Council of Mortgage Lenders said there were 41,500 loans - worth £5.9bn - advanced for house purchase in May. This was up from 40,800 in April.
Despite the monthly increase in house purchase activity, it is still below the level seen in May last year, the CML said, where 43,800 advances worth £6.3bn were made.
Remortgage lending picked up slightly in May too as 29,000 remortgage loans were advanced, worth £3.6bn. This was up from 24,700, again worth £3bn, in April.
Compared to May last year, remortgage lending has increased by nine per cent in value, but remains below the recent peak of £4.1 billion from March this year, the CML said.
Michael Coogan, CML director general, said: "Over the coming months seasonal factors are likely to push up lending for house purchase.
“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 for the rest of the year.
"Funding market conditions appear a little more positive, for example, recent securitisation deals suggest confidence has returned as investors regain their appetite to invest in bonds backed by mortgage assets. Overall this is a positive influence on mortgage market conditions."
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