Gross Mortgage Lending increases

The Council of Mortgage Lenders have published data which shows that gross mortgage lending in the UK was approximately £11.5 billion in March, which is up by 24% on February, when it was £9.3 billion.

The CML say that this figure is in step with the annual pattern, (which has a tendency to rise in March,) as it is only 3% higher than last March.

In today’s CML market commentary, CML economist Paul Samter commented:

“Overall, housing and mortgage activity remains subdued, but is comfortably higher than in the depths of the recession a year ago. Despite the increase in activity late last year and a subsequent fall early this year – due to the end of the stamp duty holiday – the underlying position looks to have barely changed. But with the gradually improving economic backdrop and interest rates still low, we continue to expect a gentle improvement in market conditions later in the year.

“However, the longer-term problems facing the market remain and will limit the speed of recovery in the housing market and wider economy. Financial institutions still face the prospect of around £300 billion of official support schemes beginning to end from next year, and will need to find alternative funding sources. This will likely limit how much new funding can be made available to the housing market.”

Source: Council of Mortgage Lenders. 19/4/10