Mortgage lending increases in May

People seeking cheap mortgages are likely to be pleased to learn that lending has increased, according to new data from the Council of Mortgage Lenders CML.

It found that gross mortgage lending totalled £11.3 billion in May, an increase of 12 per cent on April's figure and one per cent higher year on year.

However, it said that despite an overall increase in lending, money lent for house purchases - rather than remortgages - is running below levels from earlier this year.

"Gross mortgage lending in May recovered after low activity levels in April. Distorting effects from Easter and bank holidays cloud the current picture, but the likelihood seems to be for essentially flat levels of lending over the next couple of months," CML director general Michael Coogan explained to those seeking cheap mortgages.

Meanwhile, the Halifax has revealed that homes in some of the UK's most prosperous areas have increase in value by 219 per cent in the last decade, from an average of £67,178 in 1998 to £214,162 in 2008.

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2011-06-20 13:13:55 © Moneyextra.com