Mortgage lending up 8% in July

Gross mortgage lending increased to £12.7bn in July, representing a monthly increase of 8%, according to the latest figures from the Council of Mortgage Lenders. This latest figure shows that mortgage lending rose to its highest level since November 2011 when it reached £13.2bn. CML’s market and data analyst Caroline Purdey says: “Gross mortgage lending showed an 8% increase from last month, continuing the see-saw pattern seen throughout this year, albeit against a broadly flat market.

“Interpretation of recent trends continues to be challenged by one-off effects. We look forward to the September figures when the distorting effects of the Diamond Jubilee and the Olympics should largely have worked their way through”

SPF Private Client’s chief executive Mark Harris says: “The Funding for Lending scheme should deliver more competitive mortgage rates in coming weeks and these are already filtering through. We’ve seen five-year fixed rates fall to historic lows and expect more jostling for position in this marketplace.

“This should also lead to an increase in the number of homeowners re mortgaging – an area which has been weak over the past couple of years as borrowers have been happy to sit on their lender’s standard variable rate. Now there is a real incentive for many to take the plunge and re mortgage.”