Thursday 20th March 2008
Gross mortgage lending declined during February, a report from the Council of Mortgage Lenders (CML) shows.
CML research shows that over the course of the month, lending fell from January's total of £25.9 billion to £24 billion.
This represents a decline of around seven per cent and, according to director general of the CML Michael Coogan, and provides further evidence of worsening conditions for lenders in the UK property sector.
In order to re-stimulate the market, a further cut in interest rates is needed, he added.
Mr Coogan commented: "We have entered a substantially slower phase in the housing market and there will be ongoing problems in the mortgage funding markets unless the Bank of England makes new, broader based attempts to improve levels of liquidity in the UK.
"Demand for mortgages remains strong but cannot be fully met from existing funding. This has led many lenders to reduce their product ranges, increase their mortgage prices and, in some cases, to reduce their lending capacity."
Earlier this month the Bank of England held interest rates at 5.25 per cent.
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Mortgages
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