CML Data for May Reveals a Remortgage Increase and Some Stabilization in the Mortgage Market
Lending numbers from data compiled by the Council of Mortgage Lenders (CML) revealed that there was an increase in the number of mortgage loans in the month of May. There were 41,500 loans worth £5.9 billion which was up from the previous month’s level of 40,800. This helped back the information provided by economists saying that April’s drop from March was due to numerous holidays in the month including the Royal Wedding and that there would likely be an increase in May.
There was indeed an increase in May but the level was way below normal levels seen before the credit crisis and even below the same month last year. In May 2010, there were 43,800 advances worth £6.3 billion. Remortgages increased in numbers for May as well with a level of 29,000 worth £3.6bn. In April there had been 24,700 worth only £3 billion. Of those homeowners seeking a remortgage in May the majority chose a fixed rate remortgage at a level of 62 per cent over other options.
In response to the report, Michael Coogan, director general of the CML, said "There is no evidence of any drastic changes on the horizon or any significant shifts in direction for the mortgage market. These stable conditions are expected to continue for the rest of the year.
"Funding market conditions appear a little more positive, for example recent securitization deals suggest confidence has returned as investors regain their appetite to invest in bonds backed by mortgage assets. Overall this is a positive influence on mortgage market conditions."