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News: Gross Mortage Lending Falls 27%

Thu, 21 Aug 08

Gross mortgage lending has fallen by 27% over the last year, according to latest figures released by the Council of Mortgage Lenders.

The figures for July show that gross mortgage lending totalled £24.8bn, up 5% on June’s figures but significantly down on July last year.

Bob Pannell, CML head of research, said:  “While there was a small month-on-month increase in activity, it represented a notable decline from a year ago.

“This continues the weaker picture seen in June and points towards the more subdued levels of lending we are likely to see in the second half of 2008.”

Market analyst Datamonitor agrees that a further dip in mortgage lending is expected throughout the rest of the year as the squeeze on all lending gets tighter.

It is predicting that gross lending in the UK will fall by around 20 per cent this year. However it adds that this rate of decline will tail off during 2009, with a fall in gross lending of around 3% expected.

See also - Mortgages

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