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Mortgage lending at lowest rate for decade
The Council for Mortgage Lenders (CML) has reported a 32 per cent decline in mortgage lending between December 2009 and January 2010.
An estimated £9.1 billion was lent in January compared to £13.4 billion in December.
The CML reports that some decline at the beginning of the year is to be expected.
But this is the lowest monthly lending total since February 2000 when only £7.9 billion was issued.
The council believe the dip could have resulted from unnaturally high rates of lending in December as many people tried to push through their home purchases before the government reintroduced stamp duty.
Paul Samter, an economist at the CML, commented: "We remain in a period of uncertainty for the housing market and economy at large. The market certainly improved over the second half of last year and started 2010 in better shape than most would have predicted twelve months ago."
He added: "However, the Bank of England is likely to keep rates low which should continue to mitigate mortgage payment problems and help cushion borrowers from the worst of the recession."
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An estimated £9.1 billion was lent in January compared to £13.4 billion in December.
The CML reports that some decline at the beginning of the year is to be expected.
But this is the lowest monthly lending total since February 2000 when only £7.9 billion was issued.
The council believe the dip could have resulted from unnaturally high rates of lending in December as many people tried to push through their home purchases before the government reintroduced stamp duty.
Paul Samter, an economist at the CML, commented: "We remain in a period of uncertainty for the housing market and economy at large. The market certainly improved over the second half of last year and started 2010 in better shape than most would have predicted twelve months ago."
He added: "However, the Bank of England is likely to keep rates low which should continue to mitigate mortgage payment problems and help cushion borrowers from the worst of the recession."
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Published: 18/02/2010
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