Mortgage lending falls

20 July 2012

Total mortgage lending fell in June, according to the Council of Mortgage Lenders (CML).

In total, £11.9 billion was lent out in mortgages last month, a 5% decline on lending in May. But overall lending for the first half of the year was up 7%, compared to the same period in 2011.

"Mortgage lending has experienced something of a see-saw pattern over recent months, largely reflecting the short-term spike and subsequent trough in house purchase activity associated with the ending of the stamp duty concession for first-time buyers in late March," says the CML's chief economist Bob Pannell.

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Subdued market

"Weaker mortgage lending in June points to a more subdued tone for the housing market in line with that for the wider economy," he adds.

"The stamp duty concession has had a significant impact on borrowing," says Mark Harris, chief executive of mortgage broker SPF Private Clients. "We expect a drop off in the second half of the year now that this impetus has been removed, combined with the slowdown expected during the Olympics, the continuing eurozone crisis and weak consumer confidence."

He adds: "Any recovery in the housing market remains a long way off."

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