Insurance News Archive

Mortgage lending at 7-year low

Mortgage lending fell to its lowest since April 2001 in January, with just £12.4 billion worth of home loans granted during the month.

Figures from the Council of Mortgage Lenders (CML) show that lending declined by eight per cent between December and January and by 52 per cent compared to the same month in 2007.

Meanwhile, borrowing for the fourth quarter of the year dropped by nearly half compared to the same period in 2007, with banks and building societies granting £46.5 billion worth of home loans compared to £87.4 billion the year before.

Bob Pannell, head of research at the organisation, says "It would be unrealistic to expect a meaningful revival in lending in coming months. Even when conditions do improve, gross lending will be one of the later measures to recover."

Last week, the CML reported that lending for house purchasing fell by almost half in 2008, which represents the lowest level of loan activity since 1974.

20 Feb 2009