Mortgage lending increased in 2010 say CML



CML

CML

The CML (Council of Mortgage Lenders) reported that mortgage lending to house buyers rose in 2010.

The surprising statistics showed that there were 529,300 new loans made to house buyers in 2010, up3% from the previous year.

The value of new mortgages rose 11% on the previous year to £77.1billion.

The Council of Mortgage lenders said that lending was “stable but subdued” but was still at “historically low levels.”

The council were also quick to warn that many would be borrowers are still unable to enter the market due to a shortage of mortgage funds.

Director general of the CML, Michael Coogan said, “2010 was about the mortgage market continuing to adapt to the post-credit crunch environment, and the full year data shows that the lending industry is now on a more stable footing but at historically low levels of activity,”

“However, [the market] is still not serving all customer groups that may want to borrow, in particular those without a significant deposit.”

Mortgage lending did dip towards the end of 2010, but the year on year figures are distorted by the rush at the end of 2009 to beat the stamp duty changes.

The year did see the second lowest number of loans to first time buyers since records began in 1974, with only 195,000 mortgages offered.

The CML reiterated its prediction on Thursday that home repossessions would rise this year, fuelled by potential interest rate and unemployment rises.

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