Mortgage lending fell in April on 'funding issues'

24 May 2010

Written by David Whittaker.

Mortgage lending was down by 12 per cent to an estimated £10.2 billion in April as the market continues to face funding challenges, the Council of Mortgage Lenders (CML) has reported.

The figures show that borrowing has fallen by around £1.4 billion since March and suffered a one per cent year-on-year decline, reaching the lowest total for April for a decade.

Despite this, the CML noted that the market was performing "broadly in line" with its 2010 forecast, with a dip predicted in April due to Easter falling within the month this year.

Mortgage availability has increased, with higher loan-to-value ratios coming on the market, but the body admitted that conditions have remained difficult, particularly for those that cannot put down large deposits.

Michael Coogan, director-general of the organisation, commented: "Unless funding issues are addressed, any recovery in lending may well be curtailed as the repayment date on the support schemes gets closer."

The CML recently urged the government to put transitional measures in place to fill the funding gap during the withdrawal of financial support to the sector, recommending the leaders grant help to people facing financial difficulty with their repayments.

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