Mortgage lending fell 14% in August Go compare with our comparison table

Mortgage lending fell 14% in August

21 September 2010 / by Rachael Stiles

August saw gross mortgage lending fall by 14 per cent, new data shows.

The latest figures from the Council of Mortgage Lenders show that gross mortgage lending was an estimated £11.4billion in August, compared to £13.3billion in July.

August lending was down six per cent year-on-year, from £12.1billion in August 2009.

The figures for August also reveal that last month mortgage lending was at its lowest level since 2000, when it was £11.1billion.

August often sees a decline in lending following on from July due to the summer holidays, but this year's decline was bigger than most.

The next few months are unlikely to see a rise on last year's levels for the end of the year, as the last months of 2009 saw an upsurge in lending as borrowers rushed to make the most of the stamp duty holiday before it ended in January.

Commenting on the figures, CML chief economist Bob Pannell said: "We face the prospect of a difficult second half of the year."

The CML predicts that the Bank of England will keep the base rate at record lows for some time to come in order to support the economy, which Mr Pannell said "will continue to alleviate payment pressures for many borrowers."

© Fair Investment Company Ltd

Mortgage Deals Selection
ProviderInitial RateTermTypeAPR*Product or
Booking Fee
2 YearsFixed Rate4.10%£1,99560%More Info >
This mortgage reverts to the Post Office variable rate of 4.49% at the end of the fixed term. Early redemption charges apply.
5 YearsFixed Rate 4.50%£99975%More Info >
This mortgage reverts to the Yorkshire Bank variable rate of 4.95% at the end of the fixed term. Early redemption charges apply.
2 YearsTracker3.80%£1,03475%More Info >

Call 0117 332 6063

to speak to us about this deal. Reverting to base rate + 3.39% variable for the remaining term of the mortgage.
2 YearsFixed Rate 4.80% 75%More Info >

*APR = Overall Cost for Comparison


The above mortgage products are a selection of deals available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you contact our independent mortgage broker team at - independent mortgage broker or call on 0117 332 3389