Home Loan Approvals Leap By Nearly A Quarter In June

Wed, 12 Aug 2009

Home loan lending in the UK rose by almost a quarter in June, providing further evidence of stabilisation in the mortgage market, according to new figures from the Council of Mortgage Lenders (CML).

The June data showed some 45,000 home loans worth £5.9bn were granted for house purchases in June, up from 36,500 in May.

But despite the figure being just 6 per cent lower than the same month last year, it is less than half the average number of loans in June over the past seven years.

According to the CML, a total of 116,700 home purchase loans were advanced by lenders in the second quarter of 2009 (April to June), up 50 per cent from the previous quarter but down 22 per cent from Q2 2008.

The data also revealed that 17,200 loans worth £1.9bn were made to first-time buyers in June, 3,500 more than in May but 1,200 less than the previous year.

Loans to home movers totalled 27,800, up from May’s figure of 22,700 but down from 29,500 in June 2008.

Paul Samter, economist at the CML, said the figures were "tentative signs" that lending criteria had eased.

He added: "Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity."
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