House purchase lending ''reviving as remortgaging falls''
Date posted: 13 Oct 2009
House purchase lending in the UK is still showing signs of recovery, the Council of Mortgage Lenders (CML) suggests, although remortgaging activity has fallen.
Figures published by the organisation show that there were 53,000 house purchase loans in the month of August.
This is said to be 29 per cent higher than the same period in 2008, with around 19,200 loans made to first-time buyers.
However, the CML believes that low interest rates and tight criteria for lending are seeing less positive news in the remortgaging sector.
House purchase lending in the UK is still showing signs of recovery, the Council of Mortgage Lenders (CML) suggests, although remortgaging activity has fallen.
Figures published by the organisation show that there were 53,000 house purchase loans in the month of August.
This is said to be 29 per cent higher than the same period in 2008, with around 19,200 loans made to first-time buyers.
However, the CML believes that low interest rates and tight criteria for lending are seeing less positive news in the remortgaging sector.
Paul Samter, economist at the CML, commented that house purchase activity appears to be "on a firmer footing".
He added: "Remortgaging demand has fallen away in the low interest rate environment and this is dragging down gross lending levels overall."
Last month, the CML suggested that gross mortgage lending in August reached an estimated level of £12.6 billion, although this figure may have been affected by seasonal factors.
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