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Mortgage lending slumps by 57 per cent
9 December 2008 16:49
The value of new mortgages being lent in the UK has slumped by 57 per cent over the last year, statistics have revealed.
Data published by the Council of Mortgage Lenders (CML) shows that in the year up to November, the number of home loans being issued also fell by 52 per cent.
Despite this, month-on-month figures did show that 39,900 new mortgages were taken out during October, which signalled a ten per cent increase in value over September.
Director general of the CML, Michael Coogan, said that mortgage lenders are facing contradictory pressures to defend themselves against possible losses, support borrowers who have fallen into arrears and provide competitive rates to new customers.
He added that the government needed to decide its main priority, as the conflicting demands on mortgage lenders were inconsistent and unhelpful.
Members of the CML include banks, building societies and other financial services firms which together provide about 98 per cent of the UK's residential mortgage lending.
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