21
Jan
Increase reported in gross mortgage lending
Gross mortgage lending rose 14 per cent in December compared with
November, according to new figures.
The Council of Mortgage Lenders (CML) revealed the segment was
worth £13.7 billion during the month - a three per cent
increase year-on-year.
Commenting on the statistics, CML economist Paul Samter remarked
that the numbers are "surprisingly strong" as traditionally gross
lending falls in December.
The quarterly figures also bucked seasonal trends. Instead of the
typical six per cent drop between quarter three and quarter four,
there was a marginal increase from £39 billion to £39.1
billion.
Mr Samter indicated that the end of the stamp duty holiday may have
had an impact on the figures.
"Evidence suggests that the rise was driven by a surge in house
purchase completions - as remortgaging still remains exceptionally
weak," he said.
The CML data follows a recent poll of experts by Reuters, which
showed house prices are expected to increase by 1.6 per cent during
2010.