Overall lending for house purchase rose by both volume and value in July compared to the previous month, according to new data from the Council of Mortgage Lenders.
The value increased from £6.9 billion to £7.3 billion and the volume from 47,800 to 48,800. Both were at their highest since last August, though lower than July 2010.
By contrast, remortgaging rose both on a monthly basis, and on the same month last year. There were 31,500 remortgages worth £4 billion in July, up from 31,300 worth £3.8 billion in June.
The majority of borrowers are continuing to opt for repayment mortgages. 42,200 loans for house purchase (86 per cent) and 24,300 remortgage loans (77 per cent) were taken out on a repayment basis in July.
Commenting on the data, CML director general Paul Smee said: “The UK mortgage market is currently holding steady. But August saw global financial turmoil and unrest closer to home and recent Bank of England approvals figures do not necessarily suggest a continuing upturn in lending in coming months. However, it is likely that this reflects weak consumer appetite for borrowing, more than any additional constraints on the availability of mortgages.”
