Mortgage lending down 9%

Gross mortgage lending for October was an estimated £12.4 billion, down nine per cent from £13.6 billion in October 2009, according to new Council of Mortgage Lenders CML data.

The figure is the lowest October total since 2000 when gross lending reached £9.9 billion.

Brian Murphy, head of lending at the Mortgage Advice Bureau, said: "In a normally functioning market you would expect to see an uplift in overall activity between September and October following a plateau in the summer months."

He added that since the government spending review and the confirmation of 500,000 job losses borrowers have become nervous as they fear for their own circumstances.

In a speech at the CML 2010 Mortgage Industry Conference and Exhibition, CML chairman Matthew Wyles said he believed gross mortgage lending in 2010 would be £137 billion, down from £143 billion in 2009 and the trade body’s original forecast of £150 billion.

Figures recently published show that tenant arrears dropped in October and rents rose for the ninth consecutive month, according to the latest buy-to-let index from LSL Property Services.
 

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2010-11-24 12:07:27 © Moneyextra.com