Mortgage lending sees marginal rise in February

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by Kay Mitchell

The Council of Mortgage Lenders (CML) has today revealed a slight rise in mortgage lending for the month of February.

According to the Council, gross mortgage lending rose by 6% during the month compared with January but still remains 6% lower than levels seen in February 2009.

Today’s figures come after the CML reported a sharp drop in mortgage lending for the month of January, as homebuyers rushed to purchase homes in December to beat the end of the stamp duty holiday.

Housing market activity in January was also low due to the severe wintry weather that gripped most of the country during the month.

In related news, both the Halifax and the Nationwide reported house price falls during February and Mr Samter said: “Given the short-term weakness and distortions in the housing market, as well as more properties coming onto the market, it was perhaps unsurprising to see falls in some of the monthly house price indices.”

“With activity unlikely to pick up much in the short term, we would expect to see continuing price fluctuation in the coming months,” he added.

The CML concluded that new lending is expected to be subdued this year as banks rebuild their finances.