Mortgage lending on the rise, says CML

Issued: 13th March 2012

Mortgage lending levels are on the rise compared with numbers from last year, according to the latest figures from the Council for Mortgage Lenders (CML).

According to the new data released today (March 13th), 35,600 loans, worth a total of £5.3 billion, were taken out for house purchases in January.

This represented an increase on numbers recorded over the same period last year, with an increase of 22% by volume and 23% by value compared with 2011. These numbers were down on those recorded in December 2011 though, with a decline of 25% by volume and 24% by value.

Paul Smee, director general of the CML, remained unconcerned by the dip though, noting that the decline was part of a seasonal pattern in the mortgage market. “We traditionally see a substantial fall in lending figures at the start of the year, reflecting the lack of enthusiasm by buyers to move house during the post-Christmas months,” he said.

Instead, Mr Smee was wholly positive about the year-on-year rise in house purchase lending. “The year-on-year rise in house purchase lending suggests that lending levels are generally rising although we expect the trajectory to be bumpy rather than smooth this year.”

The value of your investments – and the income from them – can fluctuate and it is possible that you might not get back a significant amount of your investment. Past performance is not a guide to future performance and may not be repeated.