CML reports 7% rise in lending

Gross mortgage lending rose to £11.3 billion last month from £10.5 billion in April, it has been reported.

Latest figures from the Council of Mortgage Lenders CML highlight a seven per cent increase in borrowing last month.

However, the organisation said the market remained subdued during May, with turnover a little below that seen towards the end of 2009.

CML economist Paul Samter commented: "The ground has been cleared for the Budget to be the start of an austerity drive to get the public finances onto a more sustainable footing.

"We do not expect it to include housing and mortgage specific direct tax measures. But the market will inevitably be affected by how policy impacts on the wider economy - particularly on household finances and confidence."

Mr Samter noted that financial sector regulation has become "a further source of uncertainty" for lenders and consumers.

The CML recently revealed that first-time buyers made up the lowest proportion of house purchase loans since September 2007 during May.

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2010-06-21 14:30:02 © Moneyextra.com