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UK mortgage lending fell back in June, Bradley Associates say
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UK mortgage lending fell back in June, Bradley Associates say

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Total mortgage lending, for both home buyers and people moving lenders, fell back in June. The Council of Mortgage Lenders (CML) said £11.9bn was lent by its members last month. After a sharp rise the …

Total mortgage lending, for both home buyers and people moving lenders, fell back in June. The Council of Mortgage Lenders (CML) said £11.9bn was lent by its members last month. After a sharp rise the previous month, June’s figure was down by 5%, both from May’s lending figure and also from June last year. But the CML said lending for the first half of the year was now 7% higher than in the first half of 2011.
“Mortgage lending has experienced something of a see-saw pattern over recent months, largely reflecting the short-term spike and subsequent trough in house purchase activity associated with the ending of the stamp duty concession for first-time buyers in late March,” said the CML’s chief economist Bob Pannell.
“Weaker mortgage lending in June points to a more subdued tone for the housing market in line with that for the wider economy,” he added. Mark Harris, chief executive of mortgage broker SPF Private Clients, predicted that lending in the second half of the year would fall. “The stamp duty concession has had a significant impact on borrowing in the first half of the year, increasing the volume of lending compared with the first six months of 2011,” he said.
Bradley Associates said on a release that a drop off in the second half of the year now that this motivation has been removed, combined with the slowdown forecasted during the Olympics, the continuing eurozone crisis weak consumer confidence. In addition, any recovery in the housing market remains a long way off. While it may eventually be lifted by more mortgages being granted at decent interest rates under the funding for lending scheme to be launched in August by the Bank of England and the treasury, this is unlikely to be a major factor in the near term at least.

Published in: Business, Economy & Finance

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  • 1. BRADLEY ASSOCIATES http://blog.financialsolutions-bradleyassociates.com/wp/uk-mortgage- lending-fell-back-in-june-bradley- associates-say/
  • 2. UK mortgage lending fell back in June, Bradley Associates sayTotal mortgage lending, for both home buyersand people moving lenders, fell back in June.The Council of Mortgage Lenders (CML)said £11.9bn was lent by its members lastmonth. After a sharp rise the previousmonth, June’s figure was down by 5%, bothfrom May’s lending figure and also from Junelast year. But the CML said lending for thefirst half of the year was now 7% higher thanin the first half of 2011.
  • 3. “Mortgage lending has experiencedsomething of a see-saw pattern over recentmonths, largely reflecting the short-termspike and subsequent trough in housepurchase activity associated with the endingof the stamp duty concession for first-timebuyers in late March,” said the CML’s chiefeconomist Bob Pannell.
  • 4. “Weaker mortgage lending in June points to amore subdued tone for the housing market inline with that for the wider economy,” headded. Mark Harris, chief executive ofmortgage broker SPF PrivateClients, predicted that lending in the secondhalf of the year would fall. “The stamp dutyconcession has had a significant impact onborrowing in the first half of theyear, increasing the volume of lendingcompared with the first six months of 2011,”he said.
  • 5. Bradley Associates said on a release that adrop off in the second half of the year nowthat this motivation has beenremoved, combined with the slowdownforecasted during the Olympics, thecontinuing eurozone crisis weak consumerconfidence. In addition, any recovery in thehousing market remains a long way off. Whileit may eventually be lifted by more mortgagesbeing granted at decent interest rates underthe funding for lending scheme to be launchedin August by the Bank of England and thetreasury, this is unlikely to be a major factorin the near term at least.