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A fall in total mortgage lending in May is largely the result of a decline in re-mortgaging and probably conceals an increase in lending for house purchase according to the Council of Mortgage Lenders (CML).

The CML reported that total mortgage lending in May was down by two per cent compared to April this year. But the total figure includes re-mortgaging which has declined in popularity as low interest rates and tougher criteria for new loans make it easier for borrowers to simply transfer to their lenders' standard variable rate rather than looking for a new deal. 

The decline in re-mortgaging has been such that it has outweighed any increase in lending for house purchase to push the overall lending figure down.  CML economist Paul Samter commented: "Underneath the headline gross lending figure, it's likely that a moderate improvement in house purchase lending in May has been offset by very low re-mortgaging volumes as borrowers stay with existing deals."