July saw a slight decrease in mortgage lending according to the latest figures from the Council of Mortgage Lenders.
The figures – normally considered the most authoritative available – will raise hopes that Britain’s housing market has genuinely cooled.
Gross lending in July stood a £25.2 billion – two per cent lower than in June. The figure is also a whopping 13 per cent lower than the £29 billion recorded in July 2004.
First-time buyers accounted for 29 per cent of the money loaned – the same figure as last month.
CML director general Michael Coogan suggested that the market was now stablising.
Mr Coogan said: "Today's figures indicate that the housing market has started to stabilise at a new lower level last seen in 2003. The recent 0.25 per cent cut in interest rates by the Bank of England should help ensure that this stability continues over the coming months by giving a much needed boost to consumer confidence about future interest rates.”
He added that the CML expects current levels of lending to continue in the upcoming months.To read more about mortgages click here.
© Adfero Ltd