By Claire West
Gross mortgage lending totalled an estimated £12 billion in September, down 1% from £12.1 billion in August and down 7% from September 2009 (£12.9 billion). This is the lowest September total since 2000 (£10 billion).
Gross lending in the third quarter of 2010 was an estimated £37.4 billion, a 9% increase from the second quarter and down 4% from the third quarter of last year.
CML director general Michael Coogan comments:
“Lending volumes do not seem likely to increase substantially towards the end of the year. Funding pressures on lenders remain, and the practical implications of government and public spending cuts are beginning to emerge, with a resulting impact on consumer confidence.
“Despite the pressures on government finances, today’s comprehensive spending review is no time to make further cuts in state support for borrowers in difficulty. A concerted effort by borrowers, lenders, the government and money advice agencies has helped to keep mortgage arrears and possessions in check during the current economic downturn. These support measures help contain the wider costs of homelessness, and deliver wider benefits to the government. Now is not the time to weaken the existing safety net.”