The new figures, released on Thursday by the Council of Mortgage Lenders, show that mortgage lending for October was £12.4billion, down 9 per cent on October last year. The figure is unchanged from September and represents the lowest lending levels since October 2000.
The Council also announced gross mortgage lending for the year was predicted to be £137billion, substantially less than the original forecast of £150billionand last year’s £143billion. In 2006 and 2007, lending levels hit £350billion.
Year on year comparisons are likely to continue to show a decrease as last year’s winter months had a stronger showing due to the government’s stamp duty holiday, which saw a small rush of buyers looking to avoid extra costs.
Figures reported elsewhere have told an equally glum story, with the Bank of England reporting that mortgage approvals remained low at just 44,000 in October.
Slightly more positive news for homeowners comes in the form of research by Sainsbury’s Home Insurance which shows record-breakingly low interest rates have enabled lower mortgage repayments, nearly 25% lower than in 2008. Repayments currently average just over £8,000 a year.