The Council of Mortgage Lenders estimates that gross mortgage lending in June totalled £11.9 billion, representing a 5% fall both from the previous month (£12.5 billion) and from June 2011 (£12.6 billion).
Gross lending for the second quarter of 2012 was therefore an estimated £34.2 billion, a 2% increase from the first three months of this year (£33.6 billion) and a 3% increase from the second quarter of 2011 (£33.3 billion).
Lending in the first half of this year totalled £67.9 billion. This is 7% higher than the first six months of 2011 (£63.7 billion).
In today’s CML market commentary, CML chief economist Bob Pannell comments:
"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. Weaker mortgage lending in June points to a more subdued tone for the housing market in line with that for the wider economy.
"The recent launch of the funding for lending scheme (FLS) comes at a time when credibility in further quantitative easing had started to wane. FLS will help guard against a contraction in lending over the next 18 months and, if the external environment is sufficiently supportive, should underpin the housing market and support the government’s wider growth agenda."
Gross mortgage lending table – June 2012
NOTES TO EDITORS
1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.3 million mortgages in the UK, with loans worth over £1.2 trillion.
2. The Council of Mortgage Lenders does not publish statistics for mortgage approvals. The data in our monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.
3. Next month’s gross lending press release and market commentary will be published on 20 August 2012.
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