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News: Mortgage Lending Drops Markedly, Says BBA

Wed, 24 Feb 10

Mortgage lending by banks dropped sharply in January, according to latest British Bankers’ Association figures.

The BBA says that just 35,000 new mortgages were agreed in January, down from 46,000 in December.

The figures also reveal that the value of mortgage lending in January fell to £8bn, which is the lowest monthly amount for more than eight years.

Key factors in the decline, according to the BBA, were a rush to beat the end of the stamp duty holiday in December and the poor weather last month.

David Dooks, the BBA’s statistics director, said: “It was no surprise to see the January mortgage figures falling back from December, when transactions were being pushed through to beat the end of stamp duty relief.”

Commenting on the figures David Whittaker, managing director of Mortgages For Business, said:  “I’m actually quite surprised at how well the mortgage lending figures have stood up. With January heralding the end of the stamp duty holiday and weather conditions that Vancouver can only dream of at the moment we fully expected the figures to be even lower.

“As it stands, the market looks well placed for a pick up in lending over the next 2 or 3 months. Demand for new mortgages is increasing and new products are being introduced daily. It may be starting from a low base but expect to see some improvement in these figures as we move into spring.”

 

By Joe Lepper

See also: Mortgages, Life Insurance and Mortgage Protection Guide

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