News In Focus
19 February 2010
Gross mortgage lending at 10-year low in January
Gross mortgage lending fell to an estimated £9.1bn in January, a 32 per cent fall from £13.4bn in December and a 21 per cent fall from £11.5 bn in January 2009, according to the Council of Mortgage Lenders (CML).
This is the lowest monthly total since February 2000 (£7.9bn) and the lowest January total since 2000 (£7.4bn).
The CML says the larger than average drop between December and January shows that house purchase activity was boosted in December by a number of borrowers trying to complete their purchase before the end of the year to take advantage of the stamp duty holiday.
CML economist Paul Samter said: “The market certainly improved over the second half of last year and started 2010 in better shape than most would have predicted 12 months ago.
“More recent developments have been influenced by the end of the stamp duty holiday, and are likely to foreshadow a larger than usual seasonal drop off in activity in the early part of this year.
“However, the Bank of England is likely to keep rates low which should continue to mitigate mortgage payment problems and help cushion borrowers from the worst of the recession.”