Mortgage lending declines in August

19 September 2008

Total mortgage lending fell once again in August, new figures from the Council of Mortgage Lenders (CML) reveal.

Gross lending totalled an estimated £21.8 billion in August, a 12% fall from July and a 36% fall from August 2007.

CML director general Michael Coogan said: “These figures reflect the heightened uncertainty for both lenders and consumers in the mortgage market at present. Lenders are uncertain about future sources of funding and the cost of funding, while consumers are unsure about how much further and for how long house prices will continue to decline.”

But a spokesperson for Think Money reminded consumers to view the figures in the correct context.

“It still stands that £21.8 billion of mortgage transactions took place in August. Lenders have tightened their criteria, but mortgages are still very much available – it might just take a little longer to find the right mortgage provider.”

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