Mortgage lending up
Latest figures on mortgage lending show that it reached an estimated £13.7 billion in December according to the Council of Mortgage Lenders (CML).
This represents a 14% rise from £12.1 billion on the previous month and is up by three per cent on the same month last year. It is the first time the annual monthly comparison has been in positive territory since October 2007.
The CML's figures also highlight that total lending for the last quarter of 2009 was £39.1 billion - which is up slightly on the previous quarter.
CML economist, Paul Samter, said that the December figures are surprisingly strong as there is typically a small decline in the month
He suggests that the rise was driven by a surge in house purchase completions which can be attributed to buyers of cheaper property wanting to complete their transactions before the end of the year to beat the end of the stamp duty holiday.
He added that if there has been a "bunching" of sales to beat the
rise, mortgage lending may have seen a larger than usual seasonal
drop-off in the early part of 2010. But, he added, there is every
reason to expect a gradual improvement in the latter part of the
year with a gradual pick-up in economic growth and wider access to
credit
In summary he said this year will almost certainly be a better year in the mortgage market than 2009.