CML reports rise in house purchase lending

House purchase lending increased by 45 per cent on a like-for-like basis during March, it has been reported.

According to latest figures from the Council of Mortgage Lenders CML, the market saw its ninth consecutive month of growth with 45,000 loans taken out for house purchase.

This was a rise of 25 per cent in volume and 24 per cent in value on February 2010.

For the first quarter as a whole, there were 112,000 loans for house purchase worth £16.1 billion, down from 171,000 worth £23.3 billion in the final quarter of 2009.

Michael Coogan, director general of the CML, said the figures indicate there is currently some momentum to house purchase lending.

However, he said that for the sake of the future health of the housing and mortgage markets, the new government will need to focus on the critical issue of funding and "how to address the issues arising from the repayment of the emergency support provided during the financial crisis".

"The UK is at risk of a chronic under-supply of credit – and the rationing of mortgages for customers – for years to come," Mr Coogan said.

Last week, Paragon Mortgages reported that 51 per cent of products taken out during the first quarter of the year were tracker deals.

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2010-05-18 13:55:18 © Moneyextra.com