Gross mortgage lending totalled an estimated £11.3bn in May, according to the Council of Mortgage Lenders, boosted by a flurry of remortgaging.
The figure represented a 12% increase on the £10.1bn lent in April and was 1% higher than in May 2010.
However, lending for house purchase ran below last year’s levels, and the rise in gross lending left market commentators unimpressed.
David Whittaker, managing director of Mortgages For Business, said: “Lenders must do more than sitting on their hands hoping for the best and it’s great to see innovative ideas being tabled by the likes of Sir Callum McCarthy.
“This is exactly the sort of thinking needed to help push the market forward and pick up the slack left by falling remortgaging, and I hope others feel inspired enough to think about ways of helping the market rather than simply existing in it.”
Ian Long, managing director of St Trinity Asset Management, said: “With any interest rate rise looking increasingly unlikely this year, remortgaging activity is likely to recede in the coming months as fewer mortgage holders fear an increase in their monthly mortgage costs.”
Peter Rollings, CEO of estate agent Marsh & Parsons, said: “Even the ongoing dearth of mortgage finance hasn’t put the brakes on the housing market in central London.
“Cash investors and buyers with substantial deposits have been immune to the mortgage market downturn, and in prime areas of the capital, activity and demand have been buoyant.
“This month, there have more than 14 buyers registering for each property and competition for property has reached levels not seen since in 2007. Nevertheless, for this activity to spread outside of the capital, lenders must up their commitment to help the lower end of the market.”
Comments