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Mortgage market remains unstable

Tuesday August 21st 2012

The mortgage market has continued to "see-saw" this summer after new figures showed an 8% rise in lending between June and July.

Loans for home buyers and remortgages rose to £12.7 billion in July, its highest level since September, according to the Council of Mortgage Lenders (CML), which was 2% higher than the same month a year ago.

But it said the overall market was "broadly flat", while lending figures in recent months "see-sawed" as a result of distortions caused by one-off events such as the Olympics and the Diamond Jubilee.

It will not be until September that a clearer picture of the market emerges and, in the meantime, the CML said it was too early to say whether the recently launched £80 billion Funding for Lending scheme has encouraged banks to lend more to aspiring home owners.

CML market and data analyst Caroline Purdey said: "We look forward to the September figures when the distorting effects of the Diamond Jubilee and the Olympics should largely have worked their way through."

But Mark Harris, chief executive of mortgage broker SPF Private Clients, warned that "any sustained recovery in the housing market is a long way off".

Copyright Press Association 2012

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