A rise in lending to home movers was the main driver for an increase in house purchase lending in July, according to the Council of Mortgage Lenders (CML).
According to its data, the number of loans taken out by home movers rose by 8 per cent compared to June and 4 per cent year-on-year.
Home movers were advanced 30,500 loans worth £5.1 billion in July, with the increase contributing to a jump in house purchase lending.
The average loan-to-value remains steady at 69 per cent, down from 70 per cent last month but identical to July last year.
This continued an upward trend in house purchase lending following the expected drop in April, linked to the end of the stamp duty concession in March. A total of 49,500 loans were advanced, worth £7.6 billion, marking a 5 per cent rise compared to both June and the same period last year, as well as a 7 per cent rise in value on the previous month.
The effect of this increase was a rise in gross lending, which totalled £12.7 billion in July, a 7 per cent increase from £11.9 billion in June and up 2 per cent year-on-year.
CML director Paul Smee said: “July’s figures show a gradual improvement in the market with lending approaching the sort of levels we saw at the end of the stamp duty concession. While overall market conditions remain tight, new initiatives such as Funding for Lending and NewBuy have the potential to help lending to continue to ease gradually.”
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