19
Nov
Gross mortgage lending rises in October
Gross mortgage lending increased by five per cent in October
compared with the previous month, according to figures released by
the Council of Mortgage Lenders (CML).
The CML estimated the value of that lending to be approximately
£13.5 billion.
However, it cautioned that levels were still significantly lower
than in 2008 - gross lending in October last year stood at
£18.5 billion, 27 per cent higher than its current
status.
In a statement accompanying the data, the CML said that the type of
lending had changed substantially since the beginning of
2009.
Paul Samter, an economist at the CML, commented: "House purchase
activity has picked up significantly. By contrast, remortgaging has
dropped to decade-low levels."
Financial services company Scottish Provident welcomed the report.
However, in a warning to buyers and homeowners, it urged people to
take out relevant financial protection.
The company warned that serious illness or redundancy could have a
devastating effect on anyone who needed to make repayments on a
mortgage but was unable to earn enough to so.
