There was a surprise fall in mortgage lending at the beginning of the year according to the Council of Mortgage Lenders (CML).
January saw 41,400 mortgages granted in the UK, but this figure was 26 per cent lower than in December, and 16 per cent lower than in January 2014.
Of the home loans which were granted in January, 19,000 were to first-time buyers, the lowest figure for almost two years. Total sales from November to January were also lower than they were a year previously.
However, figures generated by the Bank of England suggest that this is just a temporary lull in the housing market, with sales expected to pick back up soon. It showed that mortgage lending is actually growing again, albeit gradually, because new loans have been approved, just not yet lent out.
“The traditional beginning-of-year seasonal lull in lending is slightly more prominent in house purchase lending than in previous years, especially in comparison to the particularly strong levels at the start of 2014.” said the CML director general, Paul Smee.
“The affordability constraints remain a factor for would-be borrowers, but we are still projecting lending to pick up over the next few months.”
