21 Jan

£136.3bn loaned to buy property for sale in 2010

£136.3bn loaned to buy property for sale in 2010

Home loans granted for people to buy property for sale in 2010 totalled £136.3 billion, it was revealed today.

Figures released from the Council of Mortgage Lenders (CML) indicate that more people are turning to letting agents for housing.

The annual total for 2010 was the lowest since 2000, when £118 billion was lent in mortgages.

December showed an 18 per cent drop in lending, with £11 billion loaned in total.

The council believes house purchases decreased in 2010 due to a surge in activity at the end of 2009, with people rushing out to estate agents before the stamp duty concession expired.

CML economist Pete Charles said: "Higher interest rates will ... hit the budgets of existing borrowers, although the expected modest rises in base rate will result in a relatively small proportionate rise in monthly payments for most mortgage holders."

This week, the CML welcomed the support of MPs in the House of Commons debate surrounding the mortgage market review.

Conservative MP Robert Syms called for the Financial Services Authority to promote competition and innovation in the mortgage market to meet customer needs.ADNFCR-1222-ID-800357408-ADNFCR

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