Challenging times ahead for UK mortgages
New data supplied by the Council of Mortgage Lenders shows uplift in mortgage lending following the decline at the end of the first time buyer stamp duty holiday earlier in the year.
The number of new UK mortgages agreed during May increased by more than 35 per cent during May when compared to April and almost 30 per cent higher than May 2011. The amount of loans increased by a third from the previous month and by nearly a quarter from twelve months ago.
First time buyer mortgage activity recovered during May with more than 18,000 new loans agreed following a drop during April resulting in just 12,700 new buyer loans.
While in the main experts agree that activity levels have improved since the end of the first quarter the majority of industry commentators are closely monitoring the Eurozone crisis and expectations for increased growth in mortgage lending remains in question as lenders remain cautious.