Mortgage lending has remained low due to a lack of activity in the housing market, new figures have revealed.
According to the Building Societies Association (BSA), net mortgage lending totalled £422 million in November of last year, an increase on the £413 million provided by building societies in October but still short of the £790 million lenders offered in November 2007.
Gross mortgage lending for November 2008 was £2,565 – £1,505 less than the amount provided over the same period in 2007.
Director general of the BSA Adrian Coles explained that concerns over job security are contributing to the lack of activity in the housing sector.
“It is no surprise that buyers are keeping out of the market,” he remarked, adding that it is “encouraging” to see positive net lending figures following the negative lending that occurred over the summer.
Those looking to take out a new standard variable rate mortgage as part of a debt management may wish to consider an offering from first direct, which, according to new Defaqto research, offer the lowest interest rates.
By Tom Musk