Mortgage lending falls 7%
Published On 20 March 2008
Gross mortgage lending fell by seven per cent last month, new figures have revealed.According to data from the Council of Mortgage Lenders (CML), lending dropped from £25.9 billion in January to £24 billion in February. This equates to a year-on-year decrease of six per cent.
The CML noted that while demand from consumers for mortgages has not decreased, the current financial climate is making it harder for people to obtain loans from mortgage lenders.
CML director general Michael Coogan noted that many providers have reduced the number of products they have on offer, which is another reason for the fall in gross mortgage lending.
He said: "Demand for mortgages remains strong but cannot be fully met from existing funding. This has led many lenders to reduce their product ranges, increase their mortgage prices and, in some cases, to reduce their lending capacity.
"As credit conditions change markedly from day to day, lenders will continue to rapidly adapt their products and pricing to match. This is a vital response to the uncertain conditions."
Approvals data for January from the Bank of England showed that there was also a notable rise in the number of remortgages.
