Mortgage News Mortgage Lending Down 9 Per Cent In April 3348

Mortgage lending down 9% in April

22 May 2009 / by Rachael Stiles
Gross mortgage lending fell nine per cent in April compared to March’s figures, according to the latest data from the Council of Mortgage Lenders (CML).

April’s total gross mortgage lending was an estimated £10.4billion, which marks a 60 per cent decline compared to the £26.1billion lent in April 2008.

Contrastingly, March saw a 16 per cent increase in mortgage lending compared to February.

But, the CML explains that the disparity between March and April is, in part, due to a seasonal drop in lending which occurs around Easter, which fell in April this year.

While April’s figures did not match those of March, it remained higher than February’s total of £9.9billion, despite the seasonal decline.

Combined lending for March and April was down 57 per cent on the same period a year earlier.

Director general of the CML, Michael Coogan, believes “It’s still too early to spot a clear pattern of recovery in the housing market as some commentators have suggested.

“Activity remains weak, and we have said we will see volatility in monthly lending figures as we bounce along at the bottom of the market,” he said.

The CML’s £145 billion forecast for gross lending in 2009 remains unchanged, Mr Coogan added.

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Written by Editorial Team