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11 November 2010

New mortgage lending remains flat

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by Gill Montia

New mortgage lending remains flat

New mortgage lending remained flat in September, with 50,000 loans for house purchase (worth £7.4 billion) advanced during the month.

Compared with August, the volume was unchanged but by value the total fell £0.2 billion.

Compared with a year earlier, figures from the Council of Mortgage Lenders (CML) show a fall of 1,000 in the number of house-purchase loans advanced, although the value of September’s loans increased by £0.3 billion year-on-year.

Loans for remortgages increased from to 29,000 in September (up from 25,000 in August), allowing remortgaging to account for 29% of total lending.

Despite the rise, the CML notes “there is still little incentive for borrowers to move away from low reversion rates with interest rates remaining low”.

More recent figures for the UK mortgage market were published by e.surv Chartered Surveyors (part of the LSL Property group) earlier this week.

They showed the number of mortgages approved to buy homes declining to 46,507 in October, down 2% on September and 18% year-on-year.

Remortgaging volumes were higher than a year earlier (up 7.7%) but remained close to historic lows.

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