The number of home loan purchases in the UK rose in July, according to the Council of Mortgage Lenders (CML).
Around 48,400 mortgages were advanced for home purchases in July, up by 1,000 from the previous month but nearly 7,000 lower than in July 2010, said the CML.
Paul Smee, Director General at the CML, said, “August saw global financial turmoil and unrest closer to home and recent Bank of England approvals figures do not necessarily suggest a continuing upturn in lending in coming months.”
Of the total loans for July, 18,200 were given to first-time home owners, down 1,300 from July last year.
First-time home buyers were required to pay an average deposit of 20 percent to get a mortgage.
According to the CML, skyrocketing house prices have brought the average new mortgage back up to £120,000, indicating that affordability is still a primary concern for first-time buyers.
Remortgaging rose in July, with 31,500 loans valued at £4 billion, one percent higher than in June.
The British Bankers’ Association (BBA) revealed that home purchase approvals stood at 33,417 in July, a moderate rise from June’s 32,123 and surpassing the previous six-month average of 30,695.
Although the council said that the nation’s mortgage market is stable, many believe activity and mortgage lending will remain conservative for the rest of this year, due to the uncertain economy and rising unemployment rate.
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