Mortgage lending drops to below half

Posted: 19 Dec 2008 13:13:32 GMT

Recent research into the gross amount of mortgage lending recorded in 2008 shows that the year to November 2008 experienced a 51 per cent fall in cash lent.

The Council of Mortgage Lenders has published figures explaining that the gross amount lent to consumers up until November accounts for only 49 per cent of that seen in the year to November 2007, highlighting the acute failings of the housing market since the economic crisis struck.

It is likely that the amount lent to consumers will remain particularly low in the coming year as banks are unable to reach cash on the international money markets, the recent Crosby report claimed.

Those struggling to pay their mortgage may wish to sell their property before negative equity adds to the pressures of home ownership.

Homeowners hoping to sell in the near future could benefit from selling a property online, as this could attract far more buyers and could work out cheaper than selling via an expensive estate agent.

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