Mortgage News
Gross lending up 14% in December
Gross mortgage lending reached £13.7bn in December, a 14% rise from November, according to the latest figures from the Council of Mortgage Lenders (CML).
For 2009 as a whole, lending totalled £143.7bn, slightly above the trade body’s estimated figure of £141bn.
However, this figure is down by 43% from £253bn in 2008 and is the lowest annual total since 2000 when there was £119.8bn advanced.
Lending was up by 3% on December 2008, which is the first time the annual monthly comparison has been in positive territory since October 2007.Other than in 2008, this is still the lowest figure for December since 2001.
In Q4 2009, lending totalled £39.1bn, up slightly from £39bn in the previous quarter but down by 14% on Q4 2008.
Paul Samter, economist at the CML, said the December figure was surprisingly strong and was driven by a surge in house purchase completions.
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He added: “The most likely explanation is that buyers of cheaper property wanted to complete their transactions before the end of the year to beat the end of the stamp duty holiday.
“There is every reason to expect a gradual improvement in the latter part of the year. With a gradual pick up in economic growth and wider access to credit, 2010 will almost certainly be a better year in the mortgage market than 2009,” he added.