Mortgage lending 'set for fall'

Mortgage lending was up in March but is on course to drop in the months to come, the Council of Mortgage Lenders (CML) has said.

Figures from the CML showed that last month the total estimated gross volume was £26.3 billion, up by five per cent on February's £25 billion.

However, it noted, the normal rise between the two months is 20 per cent and this year's figure is 17 per cent lower than last March.

CML director general Michael Coogan stated: "Lending on completed transactions is currently running at levels considerably lower than a year ago."

One of the major problems with the current mortgage market is the difficulty of compiling a sufficient deposit in the first place, Royal Institution of Chartered Surveyors senior economist David Stubbs has said.

He commented that for many this was a "mammoth task".

Such a situation may prompt some people seeking to get on the housing ladder to opt for the self build method instead.


© Adfero Ltd