Gross and net lending in the U.K. may come short of the expected GBP 150 billion and GBP 15 billion respectively this year, as lending and approvals remained subdued in the first for months of this year, the Council of Mortgage Lenders said Wednesday.
"So far this year, house purchase activity has been lower than in the last half of 2009, although this reflects the stamp duty holiday, which boosted activity towards the end of last year and caused the quiet start to 2010," CML Director Michael Coogan said. "Meanwhile, although lower interest rates are benefiting borrowers, they are removing the incentive to remortgage, which is also bearing down on the lending figures."
The CML report came soon after the Bank of England released lending report for April, according to which, net lending secured on dwellings rose GBP 490 million, larger than March's GBP 168 million. However, it was less than the GBP 600 million increase economists expected.
In November 2009, the CML forecast gross lending of worth GBP 150 billion for 2010, up from GBP 141 billion estimated for 2009. Net lending was seen to amount GBP 15 billion, an increase from GBP 8 billion estimated for 2009. The CML now says it is keeping this forecast under review as the current situation in the mortgage market is below the expected levels.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.