Council of Mortgage Lenders': response to Credit Conditions Survey

Thursday, 2 July 2009 12:00 AM

Responding to the latest Credit Conditions Survey from the Bank of England, CML economist Paul Samter said:

"The positive news is that there was a small increase in the availability of credit in the second quarter, and lenders expect this trend to continue in the next few months, with a modest expansion in access to mortgages at higher loan-to-value and loan-to-income ratios.

Unfortunately, however, not all lenders are in the same position. Some of the increase in capacity is due to commitments made by some large lenders signing up to the asset protection scheme. But there has been a significant loss of capacity across other parts of the industry, which is unlikely to return in the short term. While there are some encouraging signs, a rapid return to pre-credit crunch lending volumes and products remains extremely unlikely."

NOTES TO EDITORS

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.1 trillion.

2. The Bank of England Q2 credit conditions survey is here: www.bankofengland.co.uk/publications/other/monetary/creditconditionssurvey090702.pdf

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