UK Gross Mortgage Lending Falls In August

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Gross mortgage lending in the UK totaled GBP 12.6 billion in August, down 13% month-on-month, the Council of Mortgage Lenders said Friday. In July, lending totaled GBP 14.5 billion. Compared to the previous year, lending dropped 37% in August.

Despite the seasonal decline in activity, underlying lending levels appear to have stabilized during the summer, with stronger lending for house purchase balanced by lower levels of remortgaging, the CML said.

This trend is unlikely to change for the rest of this year, with a pick-up in housing market activity checked by continuing funding constraints and a lack of ability or incentive to remortgage.

"The likelihood of a significant pick-up in lending remains weak, but the prospects for wholesale funding markets are improving," CML economist Paul Samter said. This could result in a gradual easing in constraints on the supply of funding over time.

"However, demand from consumers and a prudent approach to lending criteria are likely to mean that the market remains subdued," Samter noted.

Gross mortgage lending in the UK totaled GBP 12.6 billion in August, down 13% month-on-month, the Council of Mortgage Lenders said Friday. In July, lending totaled GBP 14.5 billion. Compared to the previous year, lending dropped 37% in August. (Market News Provided by RTTNews)