View more on these topics

Lending drops to lowest November total since 2000

Gross mortgage lending dropped to its lowest November total since 2000 last month, according to the Council of Mortgage Lenders.

Lending reached £11.1bn in November, which is a 5 per cent drop from the £11.6bn advanced in October and 10 per cent lower than the £12.3bn advanced in November 2009.

The latest figures mean it is the fifth consecutive month where gross mortgage lending has been at its weakest since the equivalent month in 2000.

CML chief economist Bob Pannell says: “The fall in gross mortgage lending in November reflects the usual seasonal slowing of activity at this time of year, and reinforces the picture of a continuing flat market.

“Comparisons with the year earlier are somewhat distorted, as some households brought forward house purchase activity into the closing months of 2009 to take advantage of the stamp duty concession. But both demand for mortgage borrowing and the supply of funds for lending remain heavily constrained.”

Mortgage Advice Bureau head of lending Brian Murphy says: “The November gross mortgage lending figure is understandably distorted against the same month last year but there is no distortion to explain away the weakest November for 10 years. That’s just a reflection of the weakened state the market is in.

“Demand is very weak at present for obvious reasons. People are worried about the economy, their jobs, their spending power, which is being eroded by rising inflation, and interest rate rises, which may come sooner than we would like if inflation rises further. This is a brutal winter for the mortgage market.”


EU agrees on permanent eurozone rescue mechanism

EU leaders have agreed to set up a permanent bail out mechanism to help member states with debt problems that threaten the 16 countries in the eurozone. According to the BBC, the new mechanism will mean a change to the Lisbon Treaty, however EU president Herman Van Rompuy said that the leaders were ready to […]

Asset Protection Scheme has not encouraged lending, says NAO

The Treasury’s Asset Protection Scheme, which was designed to enable the Government to protect UK financial institutions against future credit losses, was only “partially successful”, according to the National Audit Office. In a report published today, the NAO says one of the key aims of the scheme, encouraging lending to credit worthy individuals, only partially […]


Should we be worried when retail investors start piling into particular sectors?

An interesting press release emerged from the Investment Management Association earlier this month. It seems that in October, the latest month for which detailed figures are available, global emerging market funds established the highest level of sales on record. Global bonds, which had led the field in September, dropped to third place, with absolute return […]


FSA cancels Hemdale Financial Management’s permissions

The FSA has cancelled the permissions of Hemdale Financial Management for repeatedly failing to comply with regulatory requirements. On April 16, 2009, the regulator issued a warning notice to Hemdale and then issued a decision notice on November 20, 2009, because the firm failed to meet its requirements. Hemdale failed to pay fees owed to […]

What exactly is product innovation?

By Fiona Tait, Pensions Specialist Ros Altmann reportedly hoped for more product innovation following pension freedom¹ and, according to one poll, 66 per cent of advisers also believe that providers should be doing more². This article considers whether there is a real client need for new products, or whether we should be focusing our attention on efficient delivery […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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