Date:Monday 20th December 2010
Author: Susanna Kavka
The amount of funds available for mortgage borrowers to apply for is restricted, according to a source from the Council of Mortgage Lenders (CML).
Bob Pannell, chief economist at the organisation, made his comments after the institution published its figures for gross mortgage lending in November, with the figure dropping five per cent compared with the previous month.
However, he noted that demand for funds is also “heavily constrained”.
“The fall in gross mortgage lending in November reflects the usual seasonal slowing of activity at this time of year and reinforces the picture of a continuing flat market,” added Mr Pannell.
He suggested any comparison with the previous year will not offer meaningful results as many people rushed to complete transactions towards the end of 2009, due to the end of the stamp duty holiday.
Director general of the CML Michael Coogan recently predicted there will be a small but stable lending market in the UK in the near future.