Mortgage market remains 'subdued'

Posted: 24 Oct 2008 13:51:03 GMT

Net mortgage lending rose by £3.6 billion in September, according to the latest figures.

A new release from the British Bankers Association (BBA) revealed that the monthly rise in September was far greater than the £2.1 billion increase in net lending recorded in August.

However, it remained significantly under the six-month average increase of £4.1 billion - a fact that the BBA attributed to the ongoing influence of the credit crunch.

Gross mortgage lending stood at £11.6 billion in September, down from the previous month's total of £13.3 billion.

It was also well below the previous six-month average figure of £15.2 billion and nearly 40 per cent less than the amount recorded in the same month the previous year.

BBA statistics director David Dooks said that the results of the latest findings were not surprising.

"Compared to a year ago, the mortgage environment has changed significantly, with supply restricted as a consequence of the situation in financial markets and demand at a much reduced level," he commented.

Meanwhile, the National Association of Estate Agents this week reported that there was a noticeable re-emergence of first-time buyers into the mortgage market in September.

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