CML suggests mortgage lending unlikely to rise much in 2010

Date:Wednesday 20th October 2010
Author: Susanna Kavka

The Council of Mortgage Lenders (CML) has suggested that gross mortgage lending in the UK is not going to rise "substantially" above its current level.

Director general of the organisation Michael Coogan explained that significant funding pressures remain for lenders in the country.

In addition to this, consumer confidence is suffering as a result of the prospect of public spending cuts, which is unlikely to lead to a large increase in lending in the last few months of 2010.

Mr Coogan also noted that various organisations in the housing industry have worked hard to cut repossessions and it is vital that the state does not remove funding and allow people to fall financially without a "safety net".

"Despite the pressures on government finances, today's comprehensive spending review is no time to make further cuts in state support for borrowers in difficulty," he added.

The Comprehensive Spending Review was announced today by the Treasury, with the housing budget cut to £4.4 billion over the next four years.