Mortgage lending 10% stronger year-on-year

By Daniel Culpan

Gross mortgage lending fell to an estimated £10.5 billion in January 2012 - but was still 10% higher than the £9.5 billion total recorded in January 2011, according to the Council of Mortgage Lenders (CML).

January's mortgage lending figures showed a 14% decrease from £12.2 billion in December 2011. But though a seasonal decline is predicted, January marked the sixth consecutive month of higher year-on-year lending.

The figures show a slight improvement in activity within the housing market, which could be due to a combination of factors.

CML chief economist, Bob Pannell, commented: "The increase in lending compared to January last year helps support our view that housing and mortgage market activity may be boosted by first-time buyers seeking to complete deals before the stamp duty concession ends in March."

Mr Pannell continued: "Should inflationary pressures continue to fall back, the squeeze on household finances should ease progressively and help support stronger economic recovery going into the second half of the year. This can only be good news for the housing market further down the track."

A mortgage expert at Think Money said: "These figures should come as welcome news for people looking to get a foot on the housing ladder - particularly after a difficult few years for homebuyers.

"We hope to see these improvements within the housing market continue."

Image © iStockPhotos / Margaret Cooper

Tags: mortgage, mortgage lending, lending, statistics, January, 2012, CML, Council of Mortgage Lenders

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