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Mortgage market gaining momentum

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The UK mortgage market has started to grow once again, with more borrowers taking advantage of the deals on offer.

Figures from the Council of Mortgage Lenders showed more borrowers taking out loans in May, although figures are still lower than last year.

Richard Sexton, director of e.surv chartered surveyors, said that the mortgage market was starting to spring back into life following a slow first half of the year.

“Mortgage lending is starting to gather some summer momentum,” he said.

“True, things aren’t racing ahead by any means, but this is characteristic of the steady growth we have come to expect from the rebuilt and regulated mortgage lending market. Our latest mortgage monitor, a forward indicator for June, suggests that we’re likely to see the speed of this comeback building from May into June.”

However, first-time buyers continue to struggle against high house prices and a lack of willing lenders in the market.

Sexton added: “A new generation needs higher LTV lending and a leg-up from government schemes to get a foothold into homeownership. Low inflation will be a boost for those trying to get on the first rung of the property ladder.

“It’s becoming slightly easier to gather together those all-important deposits, but the battle between healthier wages and rising rents will be the real contest to watch, as renewed prosperity comes up against the defining issue of the British property market – the drastic lack of supply.”

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