Mortgage lending 'declined in January'

Date:Thursday 18th February 2010
Author: Max Freedman

The amount of money that was given out in mortgage loans declined by 32 per cent in January, it has been revealed.

The Council of Mortgage Lenders (CML) found that £9.1 billion was handed out by institutions last month to those looking to take steps onto the property ladder.

However, this sum was down on the £13.4 billion peak which was experienced by the industry in December 2009, which appears to confirm fears that it was due to people looking to beat the end of the stamp duty holiday.

Although a decline is often seen between the two months, it is the lowest monthly figure for January since 2000.

Paul Samter, economist for the CML, commented: "The Bank of England is likely to keep rates low, which should continue to mitigate mortgage payment problems and help cushion borrowers from the worst of the recession."

The CML also recently found that the number of people in arrears and repossession orders was lower than had been anticipated.