CML figures show lending at long-term high
It is estimated that May 2013 saw the highest level of gross mortgage lending since October 2008.
The latest figures from the Council of Mortgage Lenders estimate that total gross mortgage lending in May increased 21% from April to £14.7 billion.
This figure is up 17% from the total of £12.6 billion in May 2012.
We reported last week on the increase in high LTV borrowers and Richard Sexton, director of e.surv chartered surveyors, drew attention to the impact of these buyers on the market.
CML chief economist Bob Pannell said: “Funding conditions, helped by the funding for lending scheme, continue to look favourable and are supporting more competitive mortgage pricing and availability and a gradual resumption of lenders’ risk appetite.”
In good news for conveyancers, Mr Pannell said that he expected stronger house purchase activity than they had previously been expecting.
Chief executive of haart, Paul Smith said of the figures: “Our branches are currently achieving 97.8% of asking prices for properties, indicating that it is a good time to sell.
“Demand is high because, at last, lenders have been able to offer very competitive rates and a higher percentage of property value loans.”
Mr Smith drew attention to a shortage in supply meaning that more needs to happen to entice home owners to sell.