Comments from Simon Crone, Vice-President Commercial � Mortgage Insurance Europe at Genworth

20 August 2013

Comments on this morning�s gross mortgage lending figures published by the Council of Mortgage Lenders: �The fact that gross mortgage lending in July was 12% higher than June and 29% higher than the equivalent month last year certainly shows that things are heading in the right direction and that the gradual market recovery is continuing. However, amid all the excitement, it�s worth remembering that the figures are improving from a historically modest base and that we are still some way short of the activity levels witnessed before the global financial crisis. While it is encouraging that lenders and borrowers are regaining some of the confidence that was eroded over the past few years, it is also worth bearing in mind that mortgage activity is still being artificially supported by initiatives such as the Funding for Lending scheme. When we are witnessing these kind of figures without ongoing state support is when there will be real cause for celebration. It is heartening that more first-time buyers are able to realise their property aspirations, but we must continue to ensure lenders are providing a steady supply of higher LTV mortgages rather than relying on factors such as familial assistance.�