21
Jun
Mortgage lending 'will depend on Budget'
Whether the recent rise in mortgage lending will continue depends
on what government will reveal in the Budget, it has been
suggested.
According to the Council of Mortgage Lenders' (CML) Paul Samter,
while there was an increase in gross mortgage lending by seven per
cent in May, tomorrow's (June 22nd) Budget will have an impact on
how much it rises over the next few months.
He said: "The market will inevitably be affected by how policy
impacts on the wider economy - particularly on household finances
and confidence."
The CML recently reported that gross mortgage lending totalled
£11.3 billion in May, an increase from £10.5 billion in
April.
Mortgage lending has also risen over the last 12 months from
£10.2 billion in May 2009.
Despite this, the organisation suggested that lending by the end of
2010 could fail to reach its forecast of £150 billion.
Last week, the CML voiced its opinion about the government's
possible mortgage caps, stating that if banks avoided lending money
to high-risk clients this could affect the entire property
market.
