CML estimates small monthly rise in mortgage lending

by Aaron Strutt

Jun 17 2015

Gross mortgage lending in May showed little change on the previous month or on the same month last year, according to the Council of Mortgage Lenders (CML).

Lending rose by 2% on the previous month to an estimated £16.2 billion, but was 3% lower than the £16.8 billion of lending undertaken in May 2014.

Data published by the Bank of England on mortgage approvals, suggests that the market can expect an upturn in lending over the coming months, reflecting the CML's assessment that a modest recovery is under way.

Mohammad Jamei, economist at the Council of Mortgage Lenders, says: “The economic environment is one that should support increased activity in the near term, coupled with low mortgage rates. But while we expect these factors to support activity, there is a limited upside, driven mainly by affordability constraints.”