Gross mortgage lending fell by 7% between January and February, indicating a further slowing of the market, according to the Council of Mortgage Lenders (CML).
The CML’s figures show lending in February was £24bn, compared with £25.9bn in January and 6% lower than the £25.6bn lent in February 2007.
The CML says data from the Bank of England highlighted low levels of house purchase activity and a rise in remortgaging, which is supporting current lending volume.
Michael Coogan, director general of the CML, says the market is entering a slowing phase and called on the Bank of England to make broader based attempts to improve liquidity levels in the UK.
“Demand for mortgages remains strong but cannot be fully met from existing funding,” he says. “This has led many lenders to reduce their product ranges, increase their mortgage prices and, in some cases, to reduce their lending capacity.”
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