Mortgage lending jumps as buy-to-let picks up

Published 20th Jul 2011

Mortgage lending rose to its highest level for nearly a year last month as landlord activity in the buy-to-let market picked up, figures showed on Wednesday.


Gross mortgage lending totalled £12.8bn in June, up 16pc on the £10.8bn lent in May, and the highest in a month since July 2010, although the total was 3pc lower than June a year ago, said the Council of Mortgage Lenders (CML).

Over the last three months, mortgage advances rose by 11pc to £33.5bn compared with the first quarter but was 3pc lower than the comparable three months in 2010.

Bob Pannell, CML chief economist, said the uncertainties surrounding the economy continued to affect potential home buyers, though the strong rental market was sparking some demand.

"Landlord activity appears to have picked up recently and with evidence of strong rental demand this should help to underpin activity over the coming months," he said.

The CML expects higher arrears and repossessions through the second half and into 2012 but Mr Pannell added that talk of widespread repossessions was overplayed given that large interest rises are unlikely for the foreseeable future.

Source: ' Telegraph '

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