Mortgage lending rose by almost 7% in October over September, suggests figures released by the Council of Mortgage Lenders today. Although this shows a move in a positive direction the figures are significantly down on the October of the previous year.
Last years monthly total was £33.4 billion compared to this year’s £17.5 Billion, a drop of 44%.
Commenting on the figure, CML director general Michael Coogan said: "While lending in October ticked up from a low figure in the preceding month, the outlook is one of continuing weakness for housing and mortgage markets in the coming months, despite the Bank rate cuts in October and November.”
Continued reluctance from lenders is still causing that market to stagnate and although this is rise is needed, there is still a long way to go before the market is out of trouble.
Mr Coogan added: "Consumer confidence is now being affected by the worsening economic outlook. However, any recovery in lending is also being held back by the continuing shortage of mortgage funding. The government should therefore publish the delayed Crosby review as part of the forthcoming pre-Budget report and announce concrete steps that will enable and encourage firms to increase mortgage loans." |
