21 Jun

Mortgage lending 'will depend on Budget'

Mortgage lending 'will depend on Budget'

Whether the recent rise in mortgage lending will continue depends on what government will reveal in the Budget, it has been suggested.

According to the Council of Mortgage Lenders' (CML) Paul Samter, while there was an increase in gross mortgage lending by seven per cent in May, tomorrow's (June 22nd) Budget will have an impact on how much it rises over the next few months.

He said: "The market will inevitably be affected by how policy impacts on the wider economy - particularly on household finances and confidence."

The CML recently reported that gross mortgage lending totalled £11.3 billion in May, an increase from £10.5 billion in April.

Mortgage lending has also risen over the last 12 months from £10.2 billion in May 2009.

Despite this, the organisation suggested that lending by the end of 2010 could fail to reach its forecast of £150 billion.

Last week, the CML voiced its opinion about the government's possible mortgage caps, stating that if banks avoided lending money to high-risk clients this could affect the entire property market.

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.