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Gross lending stable as market prepares for summer upturn

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  • 18/06/2015
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Gross lending stable as market prepares for summer upturn
Estimated gross mortgage lending remained stable in May but forward indicators suggest the market may be heading for an upturn this summer, the Council of Mortgage Lenders reports.

Lending rose by 2% on the previous month to an estimated £16.2bn but was 3% lower than the £16.8bn advanced in May 2014.

CML economist Mohammad Jamei said: “The economic environment is one that should support increased activity in the near term coupled with low mortgage rates. But while we expect these factors to support activity there is a limited upside, driven mainly by affordability constraints.”

The Bank of England’s data on mortgage approvals which is used as a forward indicator of market activity revealed that house purchase and remortgage applications agreed by lenders reached a 14-month high in April.

Jonathan Harris, director of mortgage broker Anderson Harris, said: “With the uncertainty caused by the general election out of the way gross mortgage lending has edged up month-on-month. This is in line with other forecasts, pointing to a gentle recovery in a housing market which has been paralysed for many months.”

Harris said that the low rates currently being offered by the market were likely to continue into the autumn.

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