2010 to see mortgage activity increase

According to an industry group the level of mortgage activity in the UK is set to increase this year after a turbulent couple of years where mortgage lending has become very restricted due to the global credit crisis.

Officials from the Council of Mortgage Lenders have predicted, however, that this year will see a turnaround, with lending activity expected to increase over the course of the year.

The CML reported that it is likely that mortgage lending will start to pick up in the second half of this year, and is sticking by its prediction despite the fact that the year has got off to a slow start when it comes to mortgage lending activity.

Mortgage activity in January was very slow compared to usual, but it is thought that this was partly as a result of people pushing through sales at the end of last year because the stamp duty holiday was coming to an end.

The cold weather experienced in January was also attributed to the slow level of mortgage activity for the month. Many people spent the cold snap avoiding going out, and this affected the level of mortgage activity for the month.

However, officials believe that as the weather picks up, and with the country now out of recession, activity in the mortgage sector will not continue to improve as the year goes on.

The CML believes that a strong factor in the increase in mortgage activity will be a continued easing in the financial sector, which will result in mortgage loans becoming more accessible and more affordable for consumers.

This should lead to increased lending levels, and an overall improvement in the sector. This is something that is being predicted by mortgage brokers, with a survey showing that brokers were expecting enquiries to increase by over 7 percent over the coming months.