New data from the Council of Mortgage Lenders shows that the number of home loans – for both purchase and remortgage – increased in May.
41,500 mortgages for house purchase worth £5.9 billion were advanced in May, while 29,000 remortgage loans worth £3.6 billion were also advanced.
While these figures are slightly above the same period last year, the figures are considerably lower than the numbers seen in previous years. First time buyer loans have also fallen by 2.5 per cent.
Michael Coogan, CML director general said: “Over the coming months seasonal factors are likely to push up lending for house purchase. There is no evidence of any drastic changes on the horizon or any significant shifts in direction for the mortgage market. These stable conditions are expected to continue for the rest of the year.
“Funding market conditions appear a little more positive, for example, recent securitisation deals suggest confidence has returned as investors regain their appetite to invest in bonds backed by mortgage assets. Overall this is a positive influence on mortgage market conditions.”
