Mortgage boost some way off, says CML

The Council of Mortgage Lenders (CML) has said any significant improvement in the mortgage market is a distant prospect.

Commenting on yesterday's data from the Bank of England showing that mortgage approvals in March numbered just 64,000, 8,000 less than in February, the CML suggested that the recent Bank's bond move was more about stabilising the banks than boosting the mortgage market in the short-term.

Director general Michael Coogan said he hoped the move would ultimately boost the mortgage market, but added: "It will take some months for this to happen and mortgage lending volumes are going to continue to fall before they improve because of the funding gap of around £30 billion."

Mr Coogan's view echoes that of Bank of England governor Mervyn King, who told a committee of MPs yesterday that the £50 billion bond move was aimed at boosting "confidence" in the banks rather than getting the mortgage market back on track.

Those unable to get a good mortgage deal may consider the alternative strategy of self build.


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