Mortgage lending slowed in August

The latest report from the Council of Mortgage Lenders has shown that mortgage lending fell slightly in August.

Mortgage lending fell 6% compared to July. At £32.2bn, gross lending in August was down 3% on last year.

The figures from the Council of Mortgage Lenders agree with other recent surveys, which have suggested that the housing market is beginning to slow.

Michael Coogan, director general of the Council of Mortgage Lenders said borrowers could assume that mortgage rates would stay roughly at their current level. He said: "Lending fell slightly in August, but was still at very high levels.

"We see no obvious decline in consumer demand, although some decrease in the supply of lending is being experienced in the short term as a result of the problems lenders face in raising wholesale funding."

The report from the Council of Mortgage Lenders showed that some fixed-rate mortgage deals have become cheaper recently, although other mortgages have become more expensive following turmoil in the financial markets.

A separate survey by the British Bankers Association said that its members saw a rise in net mortgage lending in August, taking repayments into account.

A spokesman for the BBA said: "This resilience shows the popularity of home ownership and also reflects more remortgaging activity."

« back to development finance news