20 Sep

Mortgage market shows August resilience

Mortgage market shows August resilience

The mortgage market in the UK remained strong throughout August as people reversed the traditional summer slowdown and continued to head to estate agents.

According to the latest figures released by the Council of Mortgage Lenders (CML), the level of borrowing on a gross level sat at £16.6 billion in August, a figure that was relatively unchanged when compared to a month before in July.

It also stated that this was a full 28 per cent higher than in the same month a year ago, when lending had sat at just £13 billion.

CML chief executive Bob Pannell said that in his opinion the biggest sign that the market is now seeing a "broad based recovery" is that people are starting to discuss a property bubble. However, he said that the current rate of price rises in nothing exceptional.

"We are beginning to experience a healthy and broad-based recovery in mortgage lending activity. We attribute much of this turnaround to the improvement in funding markets generally, and also to the Funding for Lending Scheme. The Bank of England's approvals data suggests that the positive tone for house purchase and remortgage lending will continue," he added of the market in general.ADNFCR-1222-ID-801640347-ADNFCR

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