UK Mortgage Lending Improves in June – CML

The latest report published by the Council of Mortgage Lenders yesterday on June, 20th, suggests that gross mortgage lending increased in June.

Last month, it totalled to 12.6 billion pounds, which represents a 16% increase on May total and an absolute high on average mortgage lending since June 2010.

CML figures suggest that overall mortgage lending in Q2 2011 totalled 33.5 billion pounds, which is 11% more than in Q1 2011 and yet 3% less than in Q2 2010.

Commenting on the findings of the report, Mr. Pannell of the Council of Mortgage Lenders, said that mortgage lending has not yet reached its normal levels. "The UK economy continues to experience disappointing economic growth, strong consumer price pressures, falling disposable incomes and an uncertain jobs market. This backdrop weighs negatively on purchase decisions relating to home ownership."

Mr. Archer of IHS Global Insight is also determined that the improvement in mortgage lending in June is still muted when compared to long-term norms.