Peter Rollings responding to the latest figures from the CML
Sun 19 Aug 2012
"The increased level of lending in July needs to be taken with a pinch of salt. The monthly figures owe much more to a mini-bounceback after an extremely sluggish June rather than a sudden loosening of borrowing conditions for buyers, and an 8% increase barely scratches the surface of the long-term pent-up demand from would-be buyers. In fact, it would take nearly thirteen more consecutive months of improvement at July's pace before gross lending reached the heights of July 2007. Even with the launch of the Funding for Lending scheme, given lenders' concerns over the economy and eurozone crisis, the difficulty for new buyers in getting a loan is unlikely to substantially lessen in coming months, and the mortgage market will remain dominated by the equity-rich, lower risk borrowers taking advantage of the incredibly attractive rates on offer at present."