Gross UK mortgage lending up in May.
Recently released gross UK mortgage lending figures for May reveal a £12.2 billion increase on April’s figure of £9.9 billion, which is a 24% increase on this year’s lending of £55 billion.
It is anticipated that the mortgage industry should achieve a total of £130 billion by the end of the year. This means that from now until the end of the year gross lending would needs to reach around £10.6 billion per month.
The CML's chief economist Bob Pannell commented saying that it is highly likely that high profile events like the Olympics may distort the UK mortgage market over the summer months, which may mean that until the Autumn it could be impossible to get a clear picture of the market.
The government in an effort to boost the housing market has announced measures to counter any likely adverse effect of the euro zone crisis. A funding initiative has been launched to boost both housing activity and UK home-ownership. More details of the new government funding scheme will be released in the next few weeks.
If the Bank of England’s funding for lending scheme proves to be a success then UK banks could well be in a strong position to soon substantially increase mortgage lending.
The hope is the number of first time buyers able to climb on the property ladder should increase in the second half of this year as the funding situation improves.
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