Another drop in mortgage lending for November
January 2, 2008
Mortgage lending has plummeted yet again in November according to recent figures released by the Council of Mortgage Lenders. There have been many indications of the slowing housing market, and the drop in mortgage lending for November is another indication of this slowdown. Lenders state that the drop reinforces other data that shows the weakening of the housing market in the UK.
Figures from the Council of Mortgage Lenders shows that mortgage lending for November fell by 8%. This equates to a significant fall to £30.7 billion from £33.5 billion in October. In the period last year mortgage lending stood at £33.2 billion. This is the first time that lending levels have fallen below the levels for the same month in the previous year since July 2005.
A number of banks and lenders have also stated that their surveys have shown how the housing market is weakening. The Royal Institute of Chartered Surveyors has reported that the level of interest from potential buyers was on the slide, and the Bank of England stated that in October the level of mortgage approvals was at its worst since February 2005. It is thought that the downward trend in mortgage lending levels will continue next year.
One official from the Council of Mortgage Lenders stated: “As we had forecast, lending in November dipped below its 2006 equivalent for the first time this year, and we expect this trend to continue into 2008.”
With regards to a recent announcement that the Bank of England, along with other central banks, will be injecting cash into the money markets he added: “We welcome the recent initiative by the Bank of England with other central banks to inject liquidity. This support needs to continue, and be increased, in the coming months.”
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