Mortgages -
Gross mortgage lending decreases - 20/05/2008
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During 2007, mortgage lending totaled £362 billion, 5% more than the £345 billion borrowed in 2006. This has been due to a lack in confidence in the property market as well as tighter lending criteria. There has been a 21% year on year drop in the figure standing at £ww.6billion. a 21% decrease than in November.
A Month by month credit crunch situation with banks and building societies have constrained the availability of funds to lenders which in turn reduces the number of mortgages available to borrowers.
In 2007, The Building Societies Association data claims that gross mortgage lending remained flat during that year. However, according to the Council of Mortgage Lenders, lending has increased to an estimated £26.3 billion in March, up by 5% from February but down 17% in March last year.
Both RICS and the CML inform that there is a growing gap between buyer and seller expectations on price, which has lead to a collapse in the number of housing transactions.
Yet the CML reported remortgaging activity remained durable, accounting for 44% of gross lending, its highest level for three years as borrowers came off two and three-year fixed rate mortgages.
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Call our mortgage centre on:
0800 180 4638
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