Mortgage figures show January 'slowdown'

Date:Monday 1st February 2010
Author: Susanna Kavka

The latest figures from the Council of Mortgage Lenders (CML) have suggested a slowdown in the number of people taking out a mortgage.

It suggests that the peak of £13.4 billion lending seen in December was due to prospective house buyers rushing through their purchases in order to beat stamp duty, rather than a return to growth in the market.

Overall, net lending has increased from the low levels seen in the middle of 2009, with the year's total sum standing at £11.5 billion. Although this is higher than then CML's estimates, it is still the lowest figure since records began in 1987.

CML economist Paul Samter said that it would be no surprise if, by comparison, the figures for January and February seemed much lower by comparison.

There is some positive news for first-time buyers, after it was found that the proportion of income needed to make mortgage payment is at its lowest point in five years.