21
May
Gross mortgage lending falls in April
Banks and building societies were loaning less money to buyers
throughout the month of April, although the end of the stamp duty
holiday may be partially to blame.
According to the latest Council of Mortgage Lenders' (CML) figures,
lending was down by 19 per cent compared to March's £12.6
billion.
However, it also reported that lending was two per cent higher than
the £10 billion loaned during the same month last year.
There were more people buying homes at the end of March thanks to
the fact that the stamp duty holiday ended on the 24th, and this
could be the key reason for falling lending in April.
CML chief economist Bob Pannell said: "Mortgage lending activity
has been relatively buoyant in recent months, with stronger lending
for house purchase underpinning the more upbeat lending
picture."
He went on to say that the figures in April should not cause too
much concern, as it is likely that many people simply brought their
transactions forward to help save some money on stamp
duty.