Lending for house purchase falls

www.moneynews.co.uk > Housing market > Lending for house purchase falls

Lending for house purchase falls

Tue 13th May 2008

The latest data from the Council of Mortgage Lenders (CML) shows the number of loans taken out for house purchase stood at 46,500 in March, down 48 per cent from the same month in 2007.

That is also one per cent lower than in February of this year.

Overall gross mortgage lending totalled £75 billion in the first three months of 2008, which is a reduction from £83.9 billion in the same period last year.

However remortgaging activity was actually up in the first quarter of this year, rising to £33.3 billion - a 35 per cent increase on the final quarter of 2007.

CML director general Michael Coogan predicted that "house purchase transaction volumes will continue to deteriorate in the coming months", as any improvements in credit conditions will be slow to feed through to the mortgage market.

Among those who are taking out a mortgage, fixed-rate products are an increasingly popular option, according to John Charcol.

Related News : Housing market
	Nationwide housing market report 'shows little progress'
	Nationwide housing market report suggests people value rail proximity
	Halifax housing market study 'shows slowdown in price growth'
	Positive news for 'nearly all' UK regions, according to Nationwide housing market document
	Nationwide housing market research 'shows stable picture'
	Firstrung: Abolition of Hips 'has had no impact on housing market'
	CIH: Parents question children's ability to take out a mortgage
	Rightmove: UK house price growth slowing down
	Halifax highlights popularity of coastal properties
	Santander claims HIPs were 'headache' in the housing market