Mortgage lending falls

The value of home loans granted by banks and building societies fell by 58 per cent in the year to May as homeowners shunned re-mortgaging deals.

Gross mortgage lending totalled an estimated £10.3 billion in May, down 2 per cent compared to £10.5 billion in April and down 58 per cent from May 2008, according to figures published today by the Council of Mortgage Lenders (CML).

There have been signs recently that more home-buyers are returning to the market, with estate agents reporting higher transactions volumes and record rises in buyer interest.

But the CML said that the rise in buyer activity could be being offset by a decline in the number of homeowners taking out new mortgage deals when their fixed-term deal comes to an end. A more detailed breakdown of the figures will be published in two weeks time.

Tags: council of mortgage lenders, mortage lending falls

Category: Property For Sale