Numbers of mortgages increased in February, say CML

Some 35,000 loans – worth £5billion – were advanced, representing a 49 per cent increase in volume and a 67 per cent rise in value on the previous year.

The CML said the end of the stamp duty holiday in December and the severe winter weather meant January had been sluggish for first-time buyers.

However, despite a 2 per cent monthly increase, remortgaging activity remained weak at 24,000 loans for February which is a trend set to continue, it said.

CML head of research, Bob Pannell, said the general picture was uncertain: ‘With the supply of credit still tight and the up-coming election causing political uncertainty, we are unlikely to see much change in the near future.’

He said the start of the year was traditionally a quiet period for mortgage lending. ‘This year though, transactions have been affected by the ending of 2009’s stamp duty concession and the harsh weather, making it hard to identify clear trends in recent months,’ he added.

But the budget’s new stamp duty exemption for first-time buyers of properties worth up to £250,000 might, ‘boost the market somewhat’, he said.

Mr Pannell said: ‘We hope to see the traditional seasonal pick-up as the weather gets warmer and the days get longer’.

Have your say

You must sign in to make a comment