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 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.