Mortgage lending decline
Wed 25 Mar 2015
Gross mortgage lending in the UK reached 13.4 billion in February, 9 per cent down on both January and last February, the latest figures from the Council of Mortgage Lenders show.
This is the lowest monthly estimate for gross mortgage lending since April 2013, when lending totalled 12.4 billion.
The weaker lending figures have not come as a surprise to the industry.
"Seasonal factors tend to weigh on activity at the start of the year, but looking through these, the underlying picture appears to be stabilising." said CML chief economist Bob Pannell.
"We expect lending to improve in the coming months, as employment and earnings continue to pick up and the impact of recent stamp duty reforms start to feed through."
Peter Rollings, chief executive officer of Marsh & Parsons, believes too much should not be read into the data as 2014 was an exceptional year and a formative one with major changes to the borrowing process.
He said that 2015 marks a return to more normal patterns of behaviour.