Mortgage advances increase in May

The number of loans for house purchases and remortgages both increased in May, those interested in cheap mortgages will be pleased to hear.

New data from the Council of Mortgage Lenders CML revealed that the mortgage market is showing further signs of stabilisation.

Some 41,500 home loans worth £5.9 billion were advanced in May, an increase from the 40,800 seen in April.

However, despite the rise, the figures are still below the 43,800 advances worth £6.3 billion recorded in May 2010.

"Over the coming months seasonal factors are likely to push up lending for house purchase. There is no evidence of any drastic changes on the horizon or any significant shifts in direction for the mortgage market," said Michael Coogan, CML's director general.

Meanwhile, Halifax has increased the appeal of its home loan range by cutting fixed mortgage rates by as much as 0.35 per cent, on two, three and four year deals.

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2011-07-11 13:40:22 © Moneyextra.com