June sees increase in mortgage lending

Mortgage lending in June had seen an increase in comparison to the month before. Lenders say that the trend is seasonal, but the figure is said to be approximately 48% lower than last year. CML members (Council of Mortgage Lenders) lent 12.3 billion pounds in June, which had increased from 10.5 billion pounds in May.

It has been said that the lending figures reflect the season, but this may help lending increase throughout the year. The Bank of England stated that although June showed a rise, fixed rate mortgages were becoming more expensive. The report also stated that UK business loans were being paid back instead of borrowing being increased. This did have a negative impact on the economic recovery.

The general sentiment is that the better way to help encourage people to borrow again is by companies offering more affordable loans and lower deposits. This would help the property investment market improve also as more investors would be prepared to borrow again and achieve better rental yields on cheaper mortgage rates without putting so much money into a property.