Mortgages best lending figures increase for the fifth month in a row

According to a key trade association, mortgages best lending figures for December 2011 show a year-on-year increase for a fifth month in a row. The Council of Mortgage Lenders added however, that the prospects for the housing market in the year ahead are still difficult to accurately predict.

According to the CML, gross mortgage lending in December was around £11.7 billion which is a 12 per cent drop from November but a 12 per cent increase from the previous December. This means that mortgages best lending figures for 2011 were above the CML forecast.

CML chief economist Bob Pannell said: “Continuing eurozone problems mean that mortgage funding prospects are uncertain, so overall UK mortgage market conditions for the year ahead remain difficult to call.” He added that "The closing months of 2011 saw stronger mortgage lending activity and housing transactions, despite the fact that short-term economic prospects are challenging."

The number of mortgages for borrowers with low deposits are on the increase which gives hope to those wanting to take their first step onto the property ladder. First-time buyers who only have deposits of  between 5 and 10 per cent will find more mortgages best lending deals available thanks to the strong resurgence of both the 90 and 95 per centLTVdeals. Research shows there are currently 49 mortgages on the market at 95 per centLTVwhich is more than double the number offered in January 2011.