CML reveals mortgage decline

Mortgage lending in the UK declined by 32 per cent last month, a new report has revealed.

Figures from the latest research conducted by the Council of Mortgage Lenders (CML) have shown that gross mortgage lending for January was £9.1 billion.

By way of comparison, a total of £13.4 billion was approved in December 2009.

Paul Samter, a CML economist, said: "The market certainly improved over the second half of last year and started 2010 in better shape than most would have predicted twelve months ago.

"More recent developments have been influenced by the end of the stamp duty holiday, and are likely to foreshadow a larger than usual seasonal drop off in activity in the early part of this year."

The report also revealed that January's figure was 21 per cent down year-on-year, with £11.5 billion worth of mortgage deals approved in January 2009.

Mr Samter added that payment problems experienced by many mortgage customers during the economic downturn are likely to remain "cushioned" as the Bank of England is expected to maintain its low rate of interest.

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