CML research shows mortgage lending dropped in August

Date:Monday 20th September 2010
Author: Max Freedman

The Council of Mortgage Lenders (CML) has published a report showing mortgage lending in August hit a ten-year low for that month.

Bob Pannell, chief economist at the organisation, suggested the UK mortgage market could face a "difficult" time over the second half of 2010.

The CML study indicated lending dropped to £11.4 billion, which is down six per cent year on year and represents the lowest level of activity in August since 2000, when it stood at £11.1 billion.

Mr Pannell suggested people should not worry about rising interest rates yet, as he believes the current low-interest environment may be maintained to "alleviate payment pressures" for Brits.

"The Bank of England is likely to keep interest rates at record lows for longer to support the economy," he said.

Last week, the CML revealed that 85 per cent of Brits want to own a property within ten years, with 76 per cent eager to secure a mortgage on a house over the next five years.