Figures from Council of Mortgage Lenders show loans in October were down compared with 2009

Mortgage lending fell 16% in October compared with the same month the previous year, according to the Council of Mortgage Lenders.

Its latest data shows that there were 46,000 loans for house purchase last month, worth £6.7bn, which is down 4% in terms of number from September and 6% in terms of value.

First-time buyer numbers decreased by 5% to 17,000 and loans to home movers fell 3% to 29,400.

The number of remortgaging loans fell 9% to 26,000.

Michael Coogan, director general of the CML, said: “With 2009 lending levels artificially inflated by the end of the stamp duty holiday, we expected to see a decline in lending year-on-year, so today’s figures are not surprising.

“Consumer confidence has also been affected by October’s spending review, despite the relative affordability of monthly mortgage payments, and so a stable but small lending market will continue for some time to come.”

Topics