Gross mortgage lending rose by 7% in May

21 June 2010

Gross mortgage lending came to an estimated £11.3bn in May, according to the Council of Mortgage Lenders (CML).

This was 7% higher than the £10.5bn seen in April, and 10% higher than a year earlier, when gross mortgage lending stood at £10.2bn.

The CML said that while the market is more `buoyant` than a year ago, it remains subdued, and total gross lending for the year may not quite reach its existing forecast of £150bn.

CML economist Paul Samter said: "The ground has been cleared for [the emergency Budget] to be the start of an austerity drive to get the public finances onto a more sustainable footing.

"We do not expect it to include housing- and mortgage-specific direct tax measures. But the market will inevitably be affected by how policy impacts on the wider economy - particularly on household finances and confidence."

Tags: mortgage, lending

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