Mortgage News

Mortgage lending increased in June to an estimated £12.3 billion, a 17% increase on May according to the latest figures from the Council of Mortgage Lenders. However total lending for the quarter was unchanged from the previous quarter, at the lowest level since 2001. They also reported lenders had stopped tightening their criteria in May, basing their findings on the average deposit and income multiples needed. They found first time buyers needed a 25% deposit and borrowed 2.97 times their income on average, whereas other home movers typically put down a 33% deposit, and borrowed 2.63 times their income. The CML also found that mortgage brokers continued to be the route chosen by most borrowers to finding the best mortgage. Using data from the Financial Services Authority, they reported that mortgage lending through brokers accounted for almost two thirds (64%) of the total lending in the first three months of the year. Peter Williams, Chief Executive of the Intermediary Mortgage Lending Association said “Brokers are focused on helping borrowers and ensuring lenders write high quality loans. Consumers value this, and clearly so do lenders”.