CML reports mortgage lending rise in February

Gross mortgage lending increased to an estimated £9.2 billion in February, up six per cent on the previous month, according to the Council of Mortgage Lenders CML.

Lending was down by six per cent on the £9.7 billion a year earlier, but the figures still represented an improvement on the £8.7 billion tally for January 2010, which was affected by the end of the stamp duty holiday and the Big Freeze.

The CML said the first two months of this year were broadly in line with its 12-month lending forecast of £150 billion.

CML economist Paul Samter said the organisation expects "emerging signs of improvement" as confidence in the economy grows and the UK moves past the election.

"However, the need for the authorities to address fiscal deficit will inevitably slow the economy," he claimed.

"At the same time the funding markets, while certainly better than a year ago, remain difficult and will limit the flow of available housing finance."

Last week, the CML reported that house purchase loans fell by more than three times the decline in remortgages in January 2010.

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2010-03-23 11:43:35 © Moneyextra.com