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The total amount of money borrowed in June for mortgage purposes rose sharply compared with the previous month, according to mortgage lenders. The news has been regarded with caution by IVA providers and Debt Management specialists who do not see this as a sign that the economy is improving, or that the recession is at an end.

According to figures from CML, the Council of Mortgage Lenders, the amount lent out for mortgage purposes in June was £12.3 billion, up from £10.5 billion in May this year. Although this represents an increase on a month to month basis, the June figure is around half what it was in 2008. Debt advice providers believe that this is just a seasonal increase, and nothing to get excited about.

More people than ever before are struggling with financial issues and unaffordable debt. A lot of hard up consumers are signing up for Debt Management Programmes and IVAs, in order to avoid total financial ruin, and some experts do not see the situation improving any time soon.

Nathan Gladwell, spokesman for Chiltern, the leading debt specialist had this to say; “Any increase in mortgages activity can usually be viewed as a positive sign of economic improvement.

“In this case, however, we are not going to get excited about the increase since the overall level of lending is so far down on last years figures.”

With many individuals still unsure of the financial future, owing to the increasing level of unemployment, there has been no noticeable rise in applications for credit such as personal loans, overdrafts and credit card debt.

Rise in mortgage lending “only seasonal” warn IVA providers is a post from: TheDebtPeople.co.uk