18 Oct

Mortgage lending down 12%

Mortgage lending down 12%

Mortgage lending fell by 12 per cent during September from the previous month, new research has revealed.

Figures from the Council of Mortgage Lenders (CML) indicate that £30 billion worth of mortgage loans were advanced during September.

This was in fact 2.5 per cent up from the figure for September 2006, when £29.2 billion was lent.

However, the annual increase was the smallest for two years, with CML director general Michael Coogan attributing the slowing of growth to unfavourable market conditions.

He said: "We have been expecting a slowdown in monthly lending levels in line with interest rate rises.

"In the coming months, we expect to see monthly lending levels dip below their 2006 levels for the first time this year as rate effects are exacerbated by the recent liquidity problems in the mortgage market."

The CML said that lending typically falls between August and September by around five per cent.


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