Increase In Homeowner Loans Through October
We have been constantly hearing, over the course of the last twelve months, about the stagnating housing market and the declining number of home owner loans being approved by lenders, but at last there is a little more positive news.
According to the latest monthly figures from the Council of Mortgage Lenders (CML), there was actually an increase in the total amount of new lending on mortgages and secured loans throughout the month of October.
In total there was an increase of 7 per cent over the figures for September, with an additional £18.7 billion released as new home owner loans, although the CML admit that the previous month was particularly low, with only £17.5 billion worth of new loans.
Although these figures show a slight improvement on previous months, we are still along way from recovering to the situation we were in prior to the credit crunch and new lending for October this year was 44 per cent less than it was at the same time last year. Hopefully, the Governments intervention in the secured loan markets and the recent reduction in interest rates will allow banks and building societies to start introducing some more accessible home owner loan products, to help restore consumer confidence.
Michael Coogan, of the CML said “While lending in October ticked up from a low figure in the preceding month, the outlook is of continuing weakness for housing and mortgage markets in the coming months, despite the bank rate cuts in October and November. Consumer confidence is now being affected by the worsening economic outlook.
However, any recovery in lending is also being held back by the continuing shortage of mortgage funding. The Government should therefore publish the delayed Crosby review as part of the forth coming pre-budget report and announce concrete steps that will enable and encourage firms to increase mortgage loans.”
