Rise in gross mortgage lending for January states CML
March 2, 2008
Officials from the Council of Mortgage Lenders stated recently that there was a rise in gross mortgage lending for the month of January. The figures show that despite the turbulent housing market January saw a rise of 11% in gross mortgage lending compared to December. CML officials claim that in January lending levels rose to £26.5 billion compared to £23.9 billion in December.
However, CML officials have also added that over the coming months lending levels are likely to fall as a result of remortgaging amongst other factors. The lending levels for December of last year were at their lowest since May 2005, and had dropped by 25% compared to the previous month. At the end of last year mortgage approval levels fell, and the CML says that this will contribute towards falling lending levels over the coming months.
The director general of the Council of Mortgage Lenders, Michael Coogan, stated: “Gross lending held up well in January. However, there is considerable uncertainty in the housing market at the moment and we expect lending volumes to be lower in the coming months.”
He also added: “Home buyers might be more inclined to transact if their moving costs were reduced and the government has the opportunity to address this by raising stamp duty thresholds and cutting the rates of stamp duty in next month’s Budget.”
Falling lending figures and lower mortgage approval levels have formed part of an overall cooling housing market over recent months. One member of the Monetary Policy Committee Meeting said that falling mortgage lending levels and falling house prices posed major threats to the economy.
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