Mortgage lending drops 60% in one year

Gross mortgage lending continued to fall last month, new figures have revealed.

Data from the Council of Mortgage Lenders (CML) showed that lending declined to £9.9 billion in February – a 60 per cent drop compared to the same month in 2008.

This figure was also 15 per cent less than the £11.7 billion of mortgages agreed between lenders and consumers in January.

CML director general Michael Coogan stated that as savings by consumers have dropped, their ability to lend money has been negatively impacted upon.

“Until funding improves, the capacity of lenders to lend will remain constrained,” he said.

Recent figures from Halifax showed that house prices also fell last month.

The Halifax House Price Index revealed that property values slipped by 17.7 per cent over the course of the past 12 months, with a drop of 2.3 per cent recorded in February.

By Rosie Park

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