New figures from the Council of Mortgage Lenders (CML) have shown that mortgage lending to first-time buyers and existing homeowners slumped to its lowest level for more than three decades during the first quarter of 2008. There were just 142,000 new home loans from January to March, as gross mortgage lending fell from £83.9 billion in the same period last year to £75 billion. The level of mortgage lending is below the 146,000 for the same period in 1992, despite Britain being in recession at the time.
In addition to disappointing first quarter figures, March suffered a severe slump, with 48 per cent fewer new home loans for first-time buyers and home owners than in March 2007. In addition, the number of mortgages for first time buyers also fell dramatically, with a 45 per cent decrease on the previous year. March’s concerning figures aren’t surprising in the current climate, however, and represented just a 1 per cent decrease on mortgage lending in February.
Experts have said that levels of lending could well slump further for the remainder of 2008, with property sales decreasing by the month.
Home Loans Slump Once Again
Mon, 19 May 2008
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