CML figures reveal a 19% drop in mortgage lending for April.
Recently released Council of Mortgage Lenders figures reveal gross mortgage lending dropped by 19% in April. A total lending figure of £12.6 billion was recorded for March compared to £10.2 billion a month later.
While figures reveal a drop from March to April, they are a 2% increase on the same month last year. This shows that in spite of the UK entering second recession and on going eurozone problems, mortgage lenders have managed to increase lending activity in the last 12 months.
The chief economist for the Council of Mortgage Lenders Bob Pannell commented on the recently released mortgage figures saying that lending activity has been buoyant in the last few months.
However he added that the true picture could well be one of easing down of the housing market. March figures were perhaps boosted by an increase in first time property buyers trying to complete a purchase prior to the end of the stamp duty holiday.
He went on to say that the figures show the government's error in suggesting that the stamp duty concession did nothing to boost the first time buyer sector, as since the end of the concession lending figures have taken a down turn.
The fear is if the eurozone crisis deepens, mortgage lending to first time buyers could take a further turn for the worse as there is currently a large gap between mortgage supply and demand.
Despite recent bad news reports mortgage affordability for many potential borrowers remains good. However with rising rates and tightened criteria this may change, therefore if you are looking for a mortgage you are advised to do so soon.
Contact independent 'whole of market' broker Deal Direct and we will source a competitive deal for you.
