Fewer Home Owner Loans In November
The total number amount of new lending on home owner loans and mortgages was £11.1 billion for the month of November this year, according to the latest figures from the Council of Mortgage Lenders (CML).
This is a reduction of 5 per cent on the previous month, when new loans stood at £11.6 billion and the figures show a continuing trend of reduced lending averages for the time of year.
The amount of lending on new home owner loans is currently at its lowest level seen since back in 2000, when the amount of lending stood at just £10.9 billion and this has now been the case for the past five consecutive months.
The CML have said that they expected the drop in new loans at this time of year, as this is the seasonal norm, due to potential borrowers putting off plans to move until after Christmas.
Last year, however, was the exception to the rule, as many people rushed to take out new loans before the end of the year in order to beat the deadline for the end of the stamp duty holiday, but this was then reflected in the loan numbers for January and February.
Bob Pannell of the CML commented on the figures, he said “The fall in gross mortgage lending in November reflects the usual seasonal slowing of activity at this time of year and reinforces the picture of a flat market.”
“Both demand for mortgage borrowing and the supply of funds for lending remain heavily constrained. The CML market forecasts published last week suggest that gross mortgage lending in 2011 is likely to remain at similar levels to this year. We estimate gross mortgage lending for next year will total around £135 billion.”
