Mortgage lending slowdown 'could get worse'

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Mortgage lending slowdown 'could get worse'

Fri 18th Apr 2008

The Council of Mortgage Lenders (CML) has revealed that gross lending slowed in the first quarter of this year, with worse expected to come.

Estimated gross lending for the period was down eight per cent from the first quarter of 2007, to £77.2 billion.

The organisation said it would usually expect to see an increase in lending of around 20 per cent between February and March.

Michael Coogan, CML director general, commented: "The picture for mortgage approvals for new business and prospective lending levels in the next few months is worsening."

He urged the Bank of England to take further action, swiftly, in order to boost the ailing property market.

Mr Coogan also suggested that borrowers should speak to their lender immediately if they are having financial difficulties.

The Bank of England cut interest rates from 5.25 per cent to five per cent earlier this month.

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