CML figures show less money for home buying in September
Mortgage lending continued to fall in September, supporting evidence of a downturn in the mortgage market, according to the latest figures from lenders.
The figures, from the Council of Mortgage Lenders show lending dropped 1% in September from £12.1bn to £12bn, during a month where an upturn in is usually expected. The drop follows a 9% fall in August from July.
The news follows comments by Redrow boss Steve Morgan last week that he was experiencing a further move from mortgage providers to limit lending in recent months, which could cause a “nosedive” in the housing market. Commentators have suggested the prospect of banks having to repay £300bn next year to the government as the 2008 bank bailout ends could be influencing lenders to be more conservative.
CML director general Michael Coogan said: “Lending volumes do not seem likely to increase substantially towards the end of the year. Funding pressures on lenders remain, and the practical implications of government and public spending cuts are beginning to emerge, with a resulting impact on consumer confidence.”