21 Jan

Increase reported in gross mortgage lending

Increase reported in gross mortgage lending

Gross mortgage lending rose 14 per cent in December compared with November, according to new figures.

The Council of Mortgage Lenders (CML) revealed the segment was worth £13.7 billion during the month - a three per cent increase year-on-year.

Commenting on the statistics, CML economist Paul Samter remarked that the numbers are "surprisingly strong" as traditionally gross lending falls in December.

The quarterly figures also bucked seasonal trends. Instead of the typical six per cent drop between quarter three and quarter four, there was a marginal increase from £39 billion to £39.1 billion.

Mr Samter indicated that the end of the stamp duty holiday may have had an impact on the figures.

"Evidence suggests that the rise was driven by a surge in house purchase completions - as remortgaging still remains exceptionally weak," he said.

The CML data follows a recent poll of experts by Reuters, which showed house prices are expected to increase by 1.6 per cent during 2010.ADNFCR-1222-ID-19570966-ADNFCR

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