The CML in its comment on January’s gross lending figures suggests that it was business as normal. However, it did concede that the coming months were likely to see lower gross lending volumes in the coming months.

We now await the actual composition of the lending figures. Ten years ago, the proportion of loans for house purchase was 79% of all lending; by 2007 this had fallen to 43%, with remortgaging and the buy-to-let category being the major beneficiaries of this reduction¹.

David Black, Principal Consultant - Banking at Defaqto commented: “With credit harder to obtain, the housing market in the doldrums and moving costs a major consideration, don’t be surprised if the only sector of the market that is likely to show any sign of life for the next few months is remortgaging.  Those lenders with access to funds may be looking for other niche areas to bolster their lending”.

-Ends

   ¹CML Gross mortgage lending by type of advance, February 2008

For further information contact:

Defaqto Limited
David Black, Chris Johnston or Luci Mylward
01844 295 454