Mortgage lending has fallen to its lowest level since April 2001 and is set to fall even lower, according to the Council of Mortgage Lenders (CML)
The lobby group says the mortgage market is unlikely to recover in the near future and house prices will continue to fall.
Gross mortgage lending declined to an estimated £12.4bn in January, an 8% drop from December's figure of £13.5bn and 52% down on January 2008, latest figures show.The CML says a 'meaningful revival' in mortgage lending was unrealistic in the coming months, with home loan values expected to fall further.
The figure is the lowest monthly total since April 2001 as the mortgage and housing markets remain in a severe slump.
Bob Pannell, head of research at the CML, says: "Mortgage lending activity continues to be very weak and while people are searching eagerly for some signs of recovery, it would be unrealistic to expect a meaningful revival in lending in coming months. Even when conditions do improve, gross lending will be one of the later measures to recover."Mortgage Solutions
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