The Inside Edge
The mortgage market is on two speed settings, as house purchase lending continues to recover but remortgaging continues to decline, according to the latest data released by the Council of Mortgage Lenders.
The number of house purchase loans in August (53,000) is down 5% from July but 29% higher than August a year ago. And whilst this is still significantly lower than the August average in the seven years before the credit crisis of 100,000 loans, it is more than twice the level of activity at the start of the year.
There were 19,200 loans to first-time buyers and 33,400 loans to home movers.
House purchase activity, worth £7.2 billion in August, accounted for its largest share of total mortgage activity since 2002.
At £12.3 billion, gross mortgage lending – which encapsulates all mortgage lending activity including house purchase, remortgage, and buy-to-let lending – declined 36% from August 2008.
Source: Council of Mortgage Lenders