Home Loans Up But Levels Still Very Low.

Date Published 13 August 2009

The Council of Mortgage Lenders has reported that loans for house purchase climbed 23% from 36,500 in May to 45,000 in June.

But the CML warned that this was less than half the average number of loans recorded for June over the last seven years.

Between April and June 116,700 house purchase loans were advanced by lenders, up 50% from the previous quarter but 22% down on the same period in 2008.

There were just 17,200 first-time buyer loans in June, and 27,800 loans for home movers. The average first-time buyer had a 25% deposit, and home movers had a deposit of 31%.

Paul Samter, economist at the CML, said: `Low interest rates and realistic selling prices have helped generate a welcome increase in transactions.

`But there is some way to go before we reach normal levels of activity.`