Mortgage lending down 60%

According to the Council of Mortgage Lenders (CML), mortgage lending fell to around £9.9 billion in February, down some 60% on that in February 2008.

The fall is a further 15% down on the £11.7 billion of mortgage lending in January.

The February level of lending is the lowest it’s been since February 2001.

CML have pointed out the February is usually the weakest month for mortgage lending completions.

CML director general, Michael Coogan, said ‘There are now fewer active lenders in the market, but the government wants them to lend more.’

However, as he went on to explain, the government’s own savings institution, National Savings & Investments (NS&I) is attracting savers money which means it is not going to the banks or building societies. This in turn is having a negative effect on their ability to lend.

Michael Coogan added ‘Until funding improves, the capacity of lenders to lend will remain constrained.’