Gross mortgage lending includes lending for both house purchase and remortgage. The CML said despite a modest pick-up in overall lending activity during May, lending for house purchases was running below year earlier levels as indicated by April Bank of England approvals data.
Interest in remortgaging is now less likely as expectations of higher interest rates this year have receded, the CML said. The Monetary Policy Committee once again kept rates unchanged at its June meeting for the 27th successive month.
Michael Coogan, director general at the CML, said: “Gross mortgage lending in May recovered after low activity levels in April. Distorting effects from Easter and bank holidays cloud the current picture, but the likelihood seems to be for essentially flat levels of lending over the next couple of months.”
David Sheppard, managing director at Perception Finance, added: “Figures this year have improved as I expected. As lending recovers and the amount of money builds, the business for brokers will also increase as there will be a rise in the number of people requiring advice. Recently it’s been difficult to get mortgage finance, now that lending is recovering, the key now is for brokers to provide good advice.”
