UK lending in June totalled £11.9bn, a figure that represents a 5% decline from both the previous month and the same period last year.
Gross lending for the second quarter of the year was an estimated £34.2bn, a slight increase from the figures recorded in the previous quarter and up 3% from the same period in 2011.
Bob Pannell, CML chief economist, said: “The recent launch of the funding for lending scheme (FLS) comes at a time when credibility in further quantitative easing has started to wane.
“FLS will help guard against a contraction in lending over the next 18 months and, if the external environment is sufficiently supportive, should underpin the housing market and support the government’s wider growth agenda.”
Jonathan Samuels, CEO of Dragonfly Property Finance, added: “After some relatively robust data in May, the mortgage market has once again gone into reverse.
“To say the market is see-sawing is an understatement. There is no direction at all in the mainstream mortgage market, it’s simply mirroring the agonies of the economy.
“Given the failure of previous schemes to get the high street banks lending, there’s no reason to believe that the Funding for Lending initiative will fare any better. The Government could well be flogging a dead horse.
“For the mortgage market to move forward in any material way, you need confidence among borrowers and confidence among high street lenders. At present, neither has much of it at all.”
