Gross mortgage lending declined in September, new figures have shown.
According to the Council of Mortgage Lenders (CML), this measure of borrowing stood at £11.6 billion for the month, which was ten per cent lower than the £12.9 billion recorded in August.
In addition, the figure represents a 15 per cent drop on the £13.7 billion reported for September 2011.
It means gross lending for the third quarter of 2012 came to a total of £37.3 billion, which is an eight per cent increase on the £34.5 billion seen in the second quarter of the year.
However, the sum is a five per cent decrease on the £39.3 billion in the third quarter of 2011.
Bob Pannell, chief economist at the CML – whose members undertake around 95 per cent of all UK residential mortgage lending – noted a softening of demand has been on the cards for a number of months.
Mr Pannell explained recent monthly patterns have been distorted by the effects of the London Olympic Games, adding: “House purchase demand failed to lift significantly in the third quarter, despite much better mortgage availability.
“Remortgage activity continued to languish, in contrast to relatively strong levels a year ago.”
