Mortgage lending 'at lowest level since 1974'

Date:Thursday 12th February 2009
Author: Rachel Fletcher

Mortgage lending activity reached its lowest point since 1974 last year, new figures have revealed.

A study by the Council of Mortgage Lenders (CML) found that there were 516,000 mortgages issued in 2008, representing the lowest number for 34 years.

Furthermore, this figure marked a 49 per cent drop on 2007, while December's activity was the slowest since the CML began keeping monthly records.

The council's director general Michael Coogan said that the slowdown had "reshaped the mortgage landscape" and warned the level is insufficient for the market.

"Measures are now in place to seek to restore the flow of funding to the mortgage market, but this will take time to feed through. Further action may still be necessary," he added.

Meanwhile, Catherine Hearnden of MyMortgageDirect claimed last month that it is "absolutely vital" that first-time buyers seek professional advice before they take out a mortgage.