New data released today reveals total net lending for 2008 was £39.7bn, down from £108bn, or 63 per cent, on 2007.
The number of purchased home loans dipped from 1,017,000 in 2007 to 516,000 in 2008, while the number of loans for remortgage also dropped from 1,060,000 in 2007 to 870,000 this year.
Loans for first-time buyers also plummeted by 163,600, with 357,800 in 2007 to 194,200 in 2008.
CML director general Michael Coogan says: “”The shortage of mortgage funding and reduction in the number of active lenders has reshaped the mortgage landscape in the space of a year. This low level of transactions is insufficient for the functioning of an efficient market.
“Measures are now in place to seek to restore the flow of funding to the mortgage market, but this will take time to feed through. Further action may still be necessary to increase transactions, stabilise prices and restore confidence.”