CML: Mortgage lending up in June

Mortgage lending in the UK rose in June, according to figures produced by the Council of Mortgage Lenders (CML).

It suggested that a total of £12.3 billion was lent during the 30-day period.

This represents a rise of nearly £2 billion from the £10.5 billion recorded during the previous month.

Commenting on the statistics, CML economist Paul Samter said they largely reflect seasonal factors.

Such factors "may well support lending volumes at moderately higher levels over the rest of the summer", he added.

However, the effects of restricted mortgage funding, a reduction in the number of active lenders, a weak labour market and limited consumer demand are "likely to hold back any significant and underlying improvement", the expert concluded.

Recently, the National Association of Estate Agents found that 58 per cent of consumers polled thought lenders must provide more credit if the UK is to emerge from the current property slump.