Mortgage Lending 'Dropping'

Gross mortgage lending totalled an estimated £12.5 billion in September, a 2% rise from the £12.3 billion in August - but down 27% from September 2008 - according to new data from the Council of Mortgage Lenders (CML).

Gross lending in the third quarter of 2009 was an estimated £38.9 billion, an 18% increase from the second quarter and down 36% from the third quarter of last year.

CML Economist Paul Samter said: "House buying activity is running at considerably higher levels than around the turn of the year.


"However, it remains weak on any historic comparison and is unlikely to rise much further given the constraints the lending community faces and a still difficult economic backdrop."

Behind the improvement from August to September and the relative stability of recent months is the balance between the types of lending taking place - there has been a pick up in house purchase activity, but this is off-set by the decline in remortgaging.

Mr Samter continued: CML Economist Paul Samter said: "House buying activity is running at considerably higher levels than around the turn of the year.

"However, it remains weak on any historic comparison and is unlikely to rise much further given the constraints the lending community faces and a still difficult economic backdrop."

(CD/BMcC)