Mortgage lending down in January

Date:Wednesday 24th February 2010
Author: Susanna Kavka

Mortgage lending in January was considered weak, with the increased number of sales in December and the poor weather being blamed, the British Bankers' Association (BBA) has stated.

According to the group, it is unsurprising that the number of people applying for a mortgage fell back sharply in January following the high numbers of first-time buyers who rushed forward their purchase to beat the end of the stamp duty holiday.

BBA statistics director David Dooks called the fall in the numbers a "natural reaction" following December's peak and added that the bad weather was a further contributor to suppress the market activity.

The group's statistics show that all loans approved totalled £8.1 billion in January, a 3.9 per cent increase on the previous year.

Another body which found that lending had fallen last month was the Council of Mortgage Lenders, which stated that there was a 32 per cent decline in the amount lent between December 2009 and the start of 2010.