Mortgage lending for November takes a tumble
August 3, 2008
According to figures that were recently released by the Council of Mortgage Lenders mortgaging lending levels have fallen again for November. Experts state that this is yet another sign of the cooling housing market. Industry professionals have stated that many different factors point to a slowdown in the housing market, and falling mortgage lending levels are included in this indicative factors.
The figures from the Council of Mortgage Lenders show that mortgage lending levels have fallen by 8% in November, which means that mortgage lending fell from £33.5 billion in October to £30.7 billion for November. The mortgage lending levels for November of last year stood at £33.2 billion, still significantly higher than this year’s figure.
Experts from within the industry expect the downward trend in mortgage lending to continue, with a number of factors being attributed to the weakening of the housing market and subsequent decreasing mortgage lending levels. In October the level of mortgage approvals was at its lowest since 2005 according to the Bank of England, and according to the Royal Institute of Chartered Surveyors the amount of interest and demand from potential purchasers has also been falling.
An expert from the CML stated: “As we had forecast, lending in November dipped below its 2006 equivalent for the first time this year, and we expect this trend to continue into 2008.” With regards to a recent announcement that the Bank of England, along with other central banks, will be injecting cash into the money markets he added: “We welcome the recent initiative by the Bank of England with other central banks to inject liquidity. This support needs to continue, and be increased, in the coming months.”
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