Mortgage lending falls 8% in April

Posted 2008-05-20

Mortgage lending in April fell by eight per cent compared to the same month last year, according to new figures from the Council of Mortgage Lenders.

The groups statistics show that lending also fell five per cent when compared to March, leaving the gross lending figure for the month at £25.3 billion.

For March and April combined, lending was down 16 per cent from the same period in 2007.

"In the wake of the credit crunch, 2008 will be remembered as a very weak year in the housing market," said CML director general, Michael Coogan.

He added that the group forecasts some indirect benefits from the Bank of Englands special liquidity scheme will begin to be seen in the mortgage market later in the year.

"Over the next few months, lending volumes will get worse before they get better," he concluded.

This news follows an announcement from the Royal Institution of Chartered Surveyors which predicts that house prices will fall by five per cent this year.



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