Mortgage Lending Sees Rise in June
Mortgage lending rose by 15 per cent in June to an estimated 13.1 billion pounds from the 11.4 billion in May according to the Council of Mortgage Lenders. Six out of 10 mortgages borrowed in June were for house purchases rather than remortgaging. CML economist Paul Samter said that while the estimate represented a seasonal increase, overall lending is still in low activity.
"There are signs of house prices stabilizing and more properties coming on to the market following the abolition of home information packs. This may improve liquidity in the market, but transaction levels are subdued and likely to remain so while access to credit remains constrained, " Samter said. Brian Murphy with the Mortgage Advice Bureau said, " With looming public sector cuts, taxation rises, a freeze on wage increases and inflationary pressures, we are likely to see lending tail off during the second half of 2010, with buyers likely to take a wait-and-see approach. There’s every chance that mortgage lending this year will be below the level of lending in 2009." It is thought by many analysts that many homeowners are waiting to remortgage to see if the bank rate moves. However, with lending tightening it should be considered now. Coupled with the fact that house prices could fall and therefore equity levels will drop reducing the remortgage value for homeowner it will reduce the value of a remortgage versus seeking advice and moving to remortgage now.