May 26 2013 Latest news:
Ed Foss, Senior writer
Tuesday, September 20, 2011
Mortgage lending rose notably in August, but does not constitute a genuine ‘bounce’, experts have said.
There was a 6pc rise in gross mortgage lending compared to July, from £13.4bn to £12.6bn. Year on year, comparing August 2011 to August 2010, the increase was 10pc.
The data published by the Council of Mortgage Lenders (CML) revealed that the monthly figures were the highest since July 2009.
Chief economist Bob Pannell said: “Much of the recent variation in monthly lending figures appears to have reflected seasonal factors, with the underlying picture being one of activity levels that continue to be subdued but broadly stable.
“The August performance more or less offset the weaker than expected July figure. Taking July and August together, lending has shown little change on the same months of 2009 and 2010.”
Brian Murphy, head of lending at the Mortgage Advice Bureau, said: “After a July which saw the mortgage market blanketed in some very grey clouds, optimists will no doubt rush to see a silver lining in this August data.
“The month on month rise is an apparently healthy 6pc, and there was 10pc more lending than in August last year.
“But to call this a bounce would be flattering to say the least.
“Following the subdued July figures, there is little to be proud of in this increase.
“More mortgages are being taken out for the simple reason that rates have become far more attractive in recent months and lower house prices are stimulating people to buy.
“The economy is still delicate and confidence is far from robust but increasingly there are more reasons to buy than not to buy, especially with interest rates now looking to be set in stone for at least another year.
“The market, as the CML rightly observes, is still down historically but it is by no means out.”