CML forecasts increase in mortgage activity in 2010

The Council of Mortgage Lenders in the UK (CML) has this weekend issued a report suggesting that mortgage lending in the country will pick up in the latter part of 2010. This comes despite the fact that 2010 has begun rather slowly for the mortgage arena although this is due in the main to the ending of the stamp duty concession on 31 December 2009.

Despite the fact that the CML also acknowledges that competition in the UK mortgage arena is not yet what it should be it does believe this will increase slowly and build up throughout 2010. Interestingly 58% of mortgage brokers believe that mortgage enquiries should improve in the first quarter of 2010 with an average anticipated increase in activity of 7.1%. This would appear to go against the recent negative news on the UK economy and the UK property sector with concerns that competition in the mortgage lending arena was slow to emerge.

This is a sector which needs some good news after a rocky few months during which time hopes of a significant firming of the marketplace have been weakened somewhat. The first quarter and the second quarter of 2010 are vital for the UK mortgage arena and the UK property market and all eyes will be on this area of the economy in the short to medium term.