CML says mortgage lending figures are not a surprise

Date:Friday 10th December 2010
Author: Susanna Kavka

A senior source from the Council of Mortgage Lenders (CML) has described how new figures published by the organisation have not come as a surprise to the industry.

Michael Coogan, director general of the institution, made his comments regarding statistics showing mortgage lending had fallen in October, with the number of house purchase loans recorded dropping by four per cent compared to September and by 16 per cent in comparison to October last year.

"With 2009 lending levels artificially inflated by the end of the stamp duty holiday, we expected to see a decline in lending year-on-year," said Mr Coogan.

He went on to note that consumer confidence is still suffering as a result of the recent comprehensive spending review and predicted the mortgage market will be "stable but small" for some time.

Last week, the CML supported the Financial Services Authority's decision to defer the expansion of the approved persons scheme, describing the move as "sensible".