2010.08.1910:34:00UTC+00U.K. Lenders Expect Slow Mortgage Market For Rest Of 2010, CML Says

Gross mortgage lending by British banks increased 5% month-on-month to GBP 13.6 billion in July, the Council of Mortgage Lenders said Thursday. However, it was a fall of 3% from GBP 14 billion recorded a year ago.

The CML said new data suggest that lending remains on track to meet its revised forecast, published earlier this month, of GBP 140 billion for the year as a whole.

"It is difficult to see anything other than a slow market for the rest of this year as underlying activity remains subdued," CML economist Paul Samter said. "The rest of 2010 is likely to see rather lower lending and transaction numbers compared to the same period last year."

In late 2009, mortgage market saw a pick up as some home buyers looked to move before the end of the first stamp duty holiday.

The CML pointed out that the situation is not that bleak for most home owners. The vast majority of households continue to pay their mortgages in full every month, and many have benefited from the record low interest rates. It expects this trend to continue for some time yet.

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