CML: Mortgage lending 'drops 15%' in February
Property professionals
20th March 2009
Gross mortgage lending dropped by a total of 15 per cent last month, fresh figures have revealed.
According to the Council of Mortgage Lenders (CML), the level fell below £10 billion in February - marking a decline a 60 per cent from that of the same month in 2008.
Director general of the body Michael Coogan explained that funding is being restricted due to a lack of people depositing money in banks and building societies.
He noted that consumers are turning to the government's National Savings and Investments initiative, placing a strain on the amount that financial institutions can provide.
"This is yet another example of fractured policy," said Mr Coogan, adding: "There are now fewer active lenders in the market, but the government wants them to lend more."
However, the CML, members of which represent around 98 per cent of residential mortgage lending in the UK, noted that the data is in line with its projected total of £145 billion for 2009.
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