21 May

Gross mortgage lending falls in April

Gross mortgage lending falls in April

Banks and building societies were loaning less money to buyers throughout the month of April, although the end of the stamp duty holiday may be partially to blame.

According to the latest Council of Mortgage Lenders' (CML) figures, lending was down by 19 per cent compared to March's £12.6 billion.

However, it also reported that lending was two per cent higher than the £10 billion loaned during the same month last year.

There were more people buying homes at the end of March thanks to the fact that the stamp duty holiday ended on the 24th, and this could be the key reason for falling lending in April.

CML chief economist Bob Pannell said: "Mortgage lending activity has been relatively buoyant in recent months, with stronger lending for house purchase underpinning the more upbeat lending picture."

He went on to say that the figures in April should not cause too much concern, as it is likely that many people simply brought their transactions forward to help save some money on stamp duty.ADNFCR-1222-ID-801368016-ADNFCR

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