Mortgage Borrowing drops by 20%

20/06/2008

According to figures from the Council of Mortgage lenders, in comparison to May last year the number of mortgages being lent fell by nearly twenty per-cent. Activity was strongly focused on the remortgage market according to the Council of Mortgage Lenders who represents banks and building societies in the UK.

Compared with May 2007, gross lending figures for May 2008 were around £25.5 billion which is a significant reduction of around nineteen per-cent compared to the high in May of last year where figures were around £31.5 billion. Compared to April 2008 these recent figures are down by two per-cent.

“The remortgage market remains on track to meet our forecast for growth this year, demonstrating the resilience of the market despite recent bad news” said Michael Coogan, CML director general.

He then went onto say that “however, by comparison, the next few months will remain very weak for house purchase activity for the funding reasons which