November saw mortgage loan approvals fall by eight per cent, the Council of Mortgage Lenders (CML) reports.

Gross mortgage lending declined from £33.5 billion in October to £30.7 billion in November, with the fall from the November 2006 figure standing at £33.2 billion.

The CML reports that it is the first time since July 2005 that monthly lending levels have fallen below the same month in the preceding year.

According to director-general Michael Coogan, consumer demand for mortgage loans remains high, with a lack of available funding the primary driver of the trend.

"We welcome the recent initiative by the Bank of England with other central banks to inject liquidity. This support needs to continue - and be increased - in the coming months."

Commenting on the figures, the Royal Institution of Chartered Surveyors' chief economist Simon Rubinsohn forecast that interest rates would drop by at least another 0.5 per cent by the middle of the year.
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