Mortgage lending decline 'needs to be grasped' by government

Posted: 21 May 2010 11:32:13 GMT

Mortgage lending figures for April reached their lowest point for ten years.

Results from the Council of Mortgage Lenders (CML) showed gross lending was down 12 per cent from March 2010 to around £10.2 billion.

Michael Coogan, CML director-general, recognised that the coalition government is addressing housing issues but argued the "looming" funding gap also needs attention.

"It is important that the new government grasps this nettle," he commented. "Unless funding issues are addressed, any recovery in lending may well be curtailed as the repayment date on the support schemes gets closer."

Although the CML said it expected a shortfall in April because of Easter, the latest figures are the lowest for the month since 2000 when gross mortgage lending dropped to £9.3 billion.

Similarly, results from January 2010 were the lowest they had been in ten years, when gross mortgage lending did not exceed £8 billion.

The CML suggested that first-time-buyers will continue to find the market difficult despite slightly reduced rates and an improvement in the availability of high loan-to-value mortgages.


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