Gross lending 'declines again'

November has seen gross mortgage lending fall again, the Council of Mortgage Lenders has revealed.

Gross lending has slipped 22 per cent from October and 51 per cent from November of last year.

The CML claims that there is usually a decline from October to November but this is "considerably larger than usual" and is an indication of the "market disruption and continued deterioration of confidence in the economy".

Meanwhile, SmartNewHomes.com has stated that the property slump has had an adverse effect on the number of new home starts.

With fewer homes being built and less conventional mortgages on the table more people could choose to build their own home and take out a self buildmortgage.

With an accelerator mortgage self builders can borrow up to 95 per cent of the cost of the land and up to 95 per cent of the building costs.