View more on these topics

August mortgage lending down two thirds

The Council of Mortgage Lenders has revealed that mortgage lending for August was down by nearly two thirds on 2007 figures.

The CML says there were 42,200 house purchase loans in August, 15,600 of them to first-time buyers. At £6bn, the CML says house purchase lending was 63 per cent lower than in August 2007.

Both the number and value of house purchase loans were the lowest since the CML began collecting monthly data in January 2002.

CML director general Michael Coogan assured that the mortgage lending market will improve. He says: “The package of measures announced yesterday will have a positive effect, but it will take time for it to feed through to the mortgage market.”

The council found that there were 26,600 loans to home movers worth £4.1 billion in August, down 61 per cent from August last year. The typical home mover advance was £126,000, the lowest since June 2006.

There were also 74,000 loans for remortgage worth £10bn, down 20 per cent from August 2007. This is the lowest level of remortgaging volume and value since March this year.

Gross lending declined to £19.7bn, down 42 per cent from a year ago. This was its lowest monthly level since February 2005.

Recommended

A new venture

I rarely recommend buying venture capital funds, but the current financial crisis means entrepreneurs are now expecting much less money for a stake in their business as they are finding it harder to raise money and borrow from banks.

Brexit Commentary from Natixis Global Asset Management

By David F Lafferty, CFA, SVP – Chief Market Strategist Thursday’s historic Leave vote in the UK will have both immediate and long-term consequences for the global economy and financial markets. The initial flight-to-quality reaction across asset classes has been exacerbated by the market’s misplaced confidence in a Remain victory leading up to the vote. Stock markets […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com