MORTGAGE LENDING REACHES TWO-YEAR HIGH

Mortgage lending for homebuyers reached a two-year high in August, according to figures from the Council of Mortgage Lenders (CML). Some 55,300 loans were advanced for house purchase during the month worth £8.4 billion, representing an 11 per cent increase on a year ago and the largest number of loans seen since July 2010, the CML said. Lending to first-time buyers is up by a fifth on a year ago with £2.8 billion worth of loans advanced, only just below the levels seen in March when the ending of a stamp duty concession for this sector prompted a rush of people looking to complete deals. Mortgage availability has been increasing since an £80 billion funding for lending scheme was launched at the start of August, although much of this has so far been concentrated around people with larger deposits of at least 20 per cent. Adam Offer, managing director of leading South West estate agents, Besley Hill, said the CML data was consistent with an upsurge in mortgage applications being handled by Mortgage Advice Bureau (MAB) representatives at Besley Hill’s 15 offices throughout Bristol and Gloucestershire. “There are indications that funding for lending is having a positive effect on the market with several lenders cutting their rates recently,” said Mr Offer.