Fall in home loan lending

By Nicholas Boyle

Figures from the Council of Mortgage Lenders (CML) have shown that in January, gross home loan lending fell to an estimated £9.2bn - 13% lower than the £10.6bn recorded in December.

Despite falling on a month-by-month basis, it`s actually the first time since August 2010 we`ve seen a year-on-year rise. This January`s figure was 5% higher than the £8.8bn we saw in January last year.

The CML said, though, that comparisons with figures from the start of 2010 are `distorted` - as some households rushed their house purchase through in the final months of 2009 to beat the end of the Government`s stamp duty holiday.

A spokesperson at Think Money, specialising in loans, said: "The fall in home loan lending could be the result of several things, from homeowners choosing not to remortgage to would-be first-time buyers not having enough of a deposit to get onto the property ladder.

"It`s clear that borrowers and lenders alike are still being careful with their money as economic uncertainty remains rife."

Tags: loan, loans, lending, borrow

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.