View more on these topics

House purchase lending down 26% in January

House purchase lending fell 26 per cent in January to £4.2bn from £5.7bn the month before, according to figures from the Council of Mortgage Lenders.

The trade body says rising inflation, increasing pressure from tax measures and government spending, and extreme winter weather led to a lack of movement in the mortgage market.

There were 28,500 loans advanced for house purchase, a fall of 29 per cent from the 40,000 loans advanced the month before.

The number of remortgage loans fell 6 per cent from 23,000 to 22,100 in January. The value of the total remortgage loans advanced fell 5 per cent from £2.9bn in December to £2.7bn.

CML director general Michael Coogan says: “”Pressures on household budgets have been increasing both in terms of take home pay, and indirect tax measures such as the VAT increase and recent inflationary pressures, so we were expecting a fall in transactions early in the year, and a flat mortgage market underpins our forecasts for 2011.”

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