CML: Gross mortgage lending down in September

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CML: Gross mortgage lending down in September

Thu 18th Oct 2007

Gross mortgage lending decreased by 12 per cent last month compared with August, according to new figures.

Data from the Council of Mortgage Lenders (CML) reveals that although lending increased by 2.5 per cent on the previous September, it reflect the lowest yearly rise in two years.

The CML suggested that the larger than expected fall in lending may be a sign that the most recent interest rate hikes are having an effect on consumers.

CML director general Michael Coogan commented: "We have been expecting a slowdown in monthly lending levels in line with interest rate rises.

"In the coming months, we expect to see monthly lending levels dip below their 2006 levels for the first time this year as rate effects are exacerbated by the recent liquidity problems in the mortgage market."

The September figures reflect a time before the Northern Rock crisis.

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