Mortgage lending hammered down 42 percent

Mortgage lending dropped to £17.7 billion in September according to the Council of Mortgage lenders (CML) that’s a drop of 10 percent from the previous month and a whopping 42 percent decrease from September 2007.

September Is generally a good month for sales as people try to sell their homes before the Christmas period kicks in. But September’s gross lending figure is the lowest September figure for 7 years and the lowest a figure since January 2001.

The third quarter’s gross estimate is at £62 billion, which is down 16 percent from the second quarter of 2008. Plus from the third quarter of last year it’s down 37 percent.

According to the CLM they are predicting that things will get worse, estimating that lending will continue fall from £363 billion in 2007 to £255 billion this year.

Analysis predict there will no change in mortgage lending despite the government bailouts due to lenders only accepting worthy low loan-to-value business, its also said that it’s not so much a case of the property not being out there for sale, more a case of the sellers not dropping their price, and with the limited mortgage products out their making it very difficult for genuine buyers.

Source: Telegraph