Gross mortgage lending declined in August

Gross mortgage lending declined to an estimated £11.4 billion in August, according to figures released by the Council of Mortgage Lenders CML.

The latest figures show a decrease of 14 per cent from £13.3 billion in July and a six per cent fall from the August 2009 figure of £12.1 billion.

CML figures show that this is the lowest August total since 2000 when gross lending only managed to reach £11.1 billion.

Bob Pannell, CML chief economist, said: "We face the prospect of a difficult second half of the year. However, the Bank of England is likely to keep interest rates at record lows for longer to support the economy. This will continue to alleviate payment pressures for many borrowers."

The CML has predicted that the lending volumes in the upcoming months are likely to remain below those of 2009 as activity was buoyed last year by the government's stamp duty holiday initiative.

A recent survey by the Building Society Association revealed that the number of consumers who think now is not the time to buy a house has increased despite more accessible mortgage rates. 

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2010-09-20 12:09:45 © Moneyextra.com