CML reports like-for-like lending rise in February

A 12 per cent rise in the number of loans advanced for house purchase was witnessed during February, it has been reported.

According to the Council of Mortgage Lenders CML, 35,000 loans were made during the month, worth a total of £5 billion.

The organisation noted that this represented a 49 per cent like-for-like increase in volume and a 67 per cent rise in value, albeit from extremely modest levels in February 2009.

Meanwhile, remortgaging activity was up by two per cent in February but remained weak, the CML reported.

Bob Pannell, head of research at the council, said that with the supply of credit still tight and the upcoming election causing political uncertainty, little change should be expected in the near future.

"The start of the year is traditionally a quiet period for mortgage lending," he noted.

"This year though, transactions have been affected by the ending of 2009's stamp duty concession and the harsh weather, making it hard to identify clear trends in recent months."

Earlier this week, Principality reported a 187 per cent rise in mortgage applications for the first three months of the year.

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2010-04-13 13:31:17 © Moneyextra.com