CML: Mortgage recovery still a long way off

According to the Council of Mortgage Lenders, a recovery in the mortgage market is still a long way off; this comment follows figures from CML that show home purchases for May remained low at 52,700.

Although this was a 4% rise over April, you still have to remember that this figure is still 44% lower than in May 2007.

While looking at these figures more closely, we find that there is a huge decline in the amount of people remortgaging for the month of May, it is down 14% from April and 23% lower year-on-year.

The CML are warning that things are set to get much worse before they get better, a result of first-time buyers now finding it much harder to get themselves on the property ladder, larger deposits and a good credit are to blame.

Loans for first-time buyers were up 4% in May from April however; this figures is still 41% lower than of May 2007.

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