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GROSSED MORTGAGE LENDING TOTALLED £12.6BN IN JUNE


Gross mortgage lending totalled £12.6bn in June, representing a 16% increase on May's figure, according to data from the council of Mortgage Lenders.

This is the highest monthly total since July 2010, but is does represent a 3% decrease when compared to June 2010.

Gross lending for Q2 2011 was an estimated £33.5bn, an 11% increase on the £30.1bn lent in Q1 2011,but a 3% decrease on Q2 2010.

Lending in the first half of this year totalled £63.7bn, slightly less than the £64.1bn lent in the first six months of 2010.

Bob Pannell, chief economist at the CML, says "The UK economy continues to experience disappointing economic growth, strong consumer prices pressures, falling disposable incomes and an uncertain jobs market.

"This backdrop weighs negatively on purchase decisions relating to home ownership"

However, he says the buy-to-let activity appears to have picked up recently and this hould help to underpin mortgage lending over the coming months.

 

Pannell says: UK households have made progress in bringing burdens over the past year or so,  but this largely stems from the restricted levels of new mortgage lending,  unsecured write-offs and nominal income growth.  Households in aggregate are not repaying their mortgage debt more quickly.



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