Mortgage Lending Drops in December

Mortgage lending drops during December

Mortgage lending drops during December

Mortgage lending remained weak throughout the month of December, according to The Council of Mortgage Lenders (CML).

The month of December is traditionally a quiet period, with perspective buyers choosing to wait until the New Year before purchasing.

The number of approved loans for buyers was 39,000 for the month, a 4% drop with November, and a significant 37% drop compared to December 2009.

CML have highlighted that this drop was a result of buyers rushing to beat the end of 2009’s stamp duty holiday.

2010 saw mortgage lending rise slightly, with 529,300 new loans approved for house buyers, a 3% rise from 2009.

However, the council has stated that mortgage lending remains at a historically low level for the country.

The figures from CML show that mortgage lending has stabilised in 2010, following a sharp decent in 2008 and 2009.

As a result of the ongoing mortgage rationing, first time buyers are continuing to struggle to break into the property market, with large deposits to secure their mortgages being the stumbling block.

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