RTTNews - UK's house purchase loans increased 23% month-on-month to 45,000 in June from 36,500 loans in May, the Council of Mortgage Lenders said on Tuesday. But, the number was 6% lower than the same month last year.
A 50% quarterly increase was recorded in house purchase loans for the second quarter, totaling 116,700. Again, the number is 22% lower than a year ago.
Meanwhile, the number of remortgage loans rose 13% monthly to 34,000 in June, though it was down 55% over a year ago.
The first-time buyers loans increased 26% to 17,200 in June from 13,700 loans in May. A year earlier, there were 18,400 loans in June. On an annual basis, these loans were down 7%.
Signaling an end to the tightening in criteria since the start of the credit crunch, the typical first-time buyer had a 25% deposit, unchanged since February.
The number of loans for home movers increased 22% month-on-month to 27,800 in June and it fell 6% compared to the previous year.
CML economist Paul Samter said, There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels.
But there is some way to go before we reach normal levels of activity.
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