January sees mortgage lending increase

January saw an 11 per cent increase in gross mortgage lending despite the fact that it is usually lower in January than other months of the year, according to a new report.

A report from the Council of Mortgage Lenders (CML) has revealed that the lending increased to an estimated £26 .5 billion last month, which was 11 per cent higher than December.

CML director general Michael Coogan said: "Gross lending held up well in January. However, there is considerable uncertainty in the housing market at the moment and we expect lending volumes to be lower in the coming months."

He added that home buyers might be "more inclined" to transact if their moving costs were reduced.

The figure is lower than most months in 2007 but is still an increase on December which was the lowest month for lending since May 2005.

CML is the trade association for mortgage lenders.

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