Mortgage Lending Up Slightly in February
Posted on:
08
Apr
2011
by Huw Thomas
New research from the Council of Mortgage Lenders showed that lending grew slightly in February after a particularly downbeat January.
The figures show that February saw 32,300 house purchase loans worth £4.6 billion, up eight percent by volume and five percent by value over the preceding month. However, both volume and value were down by 12 percent on February of last year.
Remortgage lending increased by five percent on January, growing in volume by three percent and falling in value by the same number compared to last February. According to the CML, a growing number of loans to first time buyers and movers accounted for the boost in purchase lending. Loans to first time buyers hit £1.4 billion, while loans to home movers grew by six percent reaching £3.1 billion.
“The February fall in lending compared to last year was despite the fact that lending in the early months of 2010 was itself depressed following the end of the earlier stamp duty concession,” said CML chief economist Bob Panell. “But research suggests cash purchases have remained steady since the credit crunch, indicating that the housing market may be holding up better than the low mortgage lending levels suggest. We are likely to see a continuing increase in remortgage activity this year, especially if and when rate rises occur."
