Mortgage lending fell in October

Mortgage lending continued its decline, falling by four per cent during October.

According to the Council of Mortgage Lenders CML, the number of would-be property owners declined dramatically and just £6.7 billion worth of homeowner loans were issued by lenders.

The drop between September and October also affected the remortgaging market, with homeowner loans for existing property holders dropping by nine per cent.

Year-on-year, however, the decline was much more marked when compared to October 2009 figures, with remortgaging falling by more than a fifth.

Michael Coogan, director general of the CML, said: "Consumer confidence has... been affected by October's spending review, despite the relative affordability of monthly mortgage payments, and so a stable but small lending market will continue for some time to come."

He added that the end of the stamp duty holiday had had a significant impact upon the mortgage market.

Recently, Hometrack claimed that property prices fell by 0.9 per cent during October.

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2010-12-10 12:53:07 © Moneyextra.com