Mortgages up in May

10/07/2009

Mortgage lending grew in May, adding to the list of "green shoots" in the property market, the Council of Mortgage Lenders (CML) has revealed.

There were 37,400 home purchase loans during the month, four per cent more than had been seen in April.

However, the CML warned that the mortgage market is still weak, with the total number of loans during May standing at 28 per cent lower than the same month a year earlier.

"Lending remains at very low levels, with the modest increase in house purchase activity offset by a fall in remortgaging," said CML economist Paul Samter.

"The trend of tightening lending criteria seems to have subsided and we may see a modest easing in these measures over the summer, which will help some borrowers."

Additionally, the study discovered that 80 per cent of first-time buyers under the age of 30 are likely to be relying on the "Bank of Mum and Dad" to help them get a foot on the property ladder.

Tags; Housing Debt and Bills,

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