Gross mortgage lending rose five per cent in July, compared to the previous month, according to the latest figures from the Council of Mortgage Lenders.

Total gross mortgage lending totalled £13.6billion, up from £12.9billion in June; however, this marked a three per cent decline in lending when compared to July 2009, when gross mortgage lending was an estimated £14billion.

But the CML believes that mortgage lending remains on track to meet its forecast of £140billion total lending for 2010.

Commenting on the figures, CML economist Paul Samter said “It is difficult to see anything other than a slow market for the rest of this year as underlying activity remains subdued.”

Mr Samter predicts that mortgage lending for the remainder of the year is likely to be lower than the end of 2009, when some home buyers were making the most of the suspension on stamp duty before it ended in January.

But while Mr Samter expects lending to be subdued in the coming months, for most existing home owners “the situation is not that bleak,” he said. “The vast majority of households continue to pay their mortgages in full every month, and many have benefited from the record low interest rates.

“This looks set to continue for some time yet. While there are a range of risks to the outlook, low rates will further help most stay on top of their finances.”

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