Mortgages down by half in a year
18 September 2008
New statistics show that overall mortgage lending fell by over half in the year to 2007.
The new findings by the Council of Mortgage Lenders (CML) show that the 47,400 mortgages issued in July 2008 were down 51% in volume compared to July 2007. At a total of £7.1 billion, the total value of mortgage lending fell by 54%.
The Council of Mortgage Lenders attributed the slowdown to a "wait-and-see approach now evident in an environment of reduced house prices", particularly for first-time buyers, as well as the long-running tightening of lending criteria.
The findings also showed an increase in the average deposit laid down by first-time buyers to £15,000, up from £13,000 in June, making for the highest loan-to-value ratio since the 1980s.
The news follows the Government’s announcement of measures to help those in most need of help in the mortgage market.
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