8 Jul

Lending for house purchase up

Lending for house purchase up

The Council of Mortgage Lenders (CML) has found that lending for house purchase increase by four per cent in volume and two per cent in value between April and May this year.

Overall there were 52,700 loans taken out to buy a property in that period at a total value of £7.9 billion, but this is still 44 per cent lower than in May last year.

The organisation also recorded a significant decline in remortgaging, with 14 per cent less loans taken out for this purpose in May than April.

At the same time, the number of loans to first-time buyers increased by four per cent.

Commenting on the figures, CML director general Michael Coogan said: "Lending levels continue to be lower than last year and any recovery is still some way away, with little sign of the special liquidity scheme increasing the flow of funds to the industry or lowering the cost of funds as hoped."

Recently the CML called on the government to do more to help the housing market, which has seen falling property prices in many areas for the last ten months.

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