Gross lending falls in August: CML

August saw gross lending figures decline to 21,800, according to the Council of Mortgage Lenders (CML).

The CML declared that this represented the lowest monthly figure since April 2005 and the lowest August figure since 2002.

It was claimed that monthly lending is likely to be subdued in the near term because of exceptionally low housing market turnover and lower than anticipated remortgaging activity.

CML director general, Michael Coogan said: "These figures reflect the heightened uncertainty for both lenders and consumers in the mortgage market at present."

Mr Coogan added that lenders are uncertain about future sources of funding and the cost of funding and the situation is being compounded by anxious consumers fearful of how much longer house prices will continue to drop for.

According to the CML, there are 11.74 million mortgages in the UK with combined loans worth over £1.2 trillion.

This week the Bank of England voted to keep interest rates at five per cent.