UK Mortgage Lending Hits Lowest Level Since 2001

Gross mortgage lending in the UK fell a further 15% in February, down to just £9.9 billion; the lowest level since February 2001 according to latest figures released by the Council of Mortgage Lenders (CML).

The report said that although a dip is expected in February, this is far above the 3-4% dip normally seen.

Michael Coogan, CML director general, said:

"Retail savings are now the predominant source of funding for mortgages. But banks and building societies have seen savings ebb away to National Savings and Investments, which has a negative impact on their ability to lend.

"This is yet another example of fractured policy. There are now fewer active lenders in the market, but the government wants them to lend more. At the same time, the governments own savings institution is sucking away the funds that would enable them to do so. Until funding improves, the capacity of lenders to lend will remain constrained."

Download full CML table