Mortgage lending recovery 'will take time'

Residential landlords who are looking to add to their property portfolios with buy-to-let mortgage deals could notice that the lending market will remain static for some moths, it has been suggested.

Independent property investment consultancy Ducalian has claimed that mortgage lenders will take time to return to confidence despite being pressured by the government to increase their lending.

Timothy Lambert, head of consulting at the firm, said: "Mortgage lending will recover in time but is likely to remain at current levels of decline further in the next few months.

"While the economy is showing growth, it is very fragile still and will take time for confidence to return to lenders, despite pressure being put on them by the government."

The comments follows the publication of a Council for Mortgage Lenders report, which revealed that UK mortgage lending declined by 32 per cent between December 2009 and January 2010.

Last month saw £9.1 billion worth of deals approves, compared to £13.4 billion over the previous four-week period.

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