Member Article

Mortgage lending still points south

MORTGAGE LENDING will stay subdued for at least the next few months, lenders say.

Total mortgage lending in October was £12.4bn, the same as in September but the lowest October figure since 2000.

The continued rationing of lending has been the main factor behind the recent fall in house prices.

The CML said lending in the coming months would probably be lower than it was a year ago.

“The month-on-month annual comparison is likely to continue to decrease a little in the coming months, because underlying lending volumes rose sharply in the latter part of 2009 as borrowers rushed to take advantage of the stamp duty concession before the end of the year,” the CML said.

Brian Murphy, at mortgage brokers the Mortgage Advice Bureau, said he was “mildly encouraged” there had been no fresh drop in lending between September and October.“Borrowers are nervous, even more so since the Spending Review and confirmation of some half a million public sector job losses,” he said.

This was posted in Bdaily's Members' News section by Ruth Mitchell .