Mortgage lending rose 24 per cent in March

20 April 2010  

Mortgage lending rose 24 per cent in March

Monday 19th April 2010

Gross mortgage lending was an estimated GBP 11.5 billion in March, a 24 per cent rise from GBP 9.3 billion in February and a three per cent rise from GBP 11.2 billion in March 2009, according to Council of Mortgage Lender data.

This still shows a fall of 24 per cent from Q4 2009, said the CML. This is the lowest quarterly lending total since the first three months of 2000, but is very much in line with our forecast for gross lending.

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 GBP 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."

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