Gross lending edges down in May

Gross lending totalled an estimated £25.5 billion in May, down only 2% from £26.1 billion in April but 19% from the £31.5 billion high in May 2007, according to the CML.  

Monthly lending levels have continued well below their position last year but at good historic levels. The Bank of England’s approvals figures show that this pattern will continue in coming months, and that lending activity has strongly focused on the remortgage market. But a wide range of banks and building societies continue to offer a range of mortgages in the market place, despite the credit crunch and funding constraints.  

CML director general, Michael Coogan commented: 

“The remortgage market remains on track to meet our forecast for growth this year, demonstrating the resilience of the market despite recent bad news. However, by comparison, the next few months will remain very weak for house purchase activity for the funding reasons which are now well rehearsed. We still await first signs of the Bank of England’s Special Liquidity Scheme indirectly helping to ease the current logjam.”