Mortgage lending rises slightly

Thursday 20th November 2008, 12:10PM GMT.

Mortgage lending rises slightly Mortgage lending rose slightly in October but is still 44 per cent lower than last year.

Data from the Council of Mortgage Lenders (CML) show a monthly seven per cent rise in gross mortgage lending, from an “admittedly weak” September figure the body admitted.

However, the figure remains down 44 per cent on a year ago, at £18.7 billion

Andrew Montlake, at mortgage broker at Cobalt Capital, said: “Few people will take heart from the fact the latest lending figures are marginally up on September, as they are still massively lower than October last year.

“You have a double whammy where consumer confidence is shot to bits by a rapidly weakening economy and the mainstream lenders are only accepting ‘quality’ applicants with big deposits.

“I hate to say it but it could be some time before things start to improve.”

CML director general Michael Coogan said any recovery in mortgage lending was being held back by the continuing shortage of mortgage funding.

“The government should therefore publish the delayed Crosby review as part of the forthcoming pre-Budget report and announce concrete steps that will enable and encourage firms to increase mortgage loans,” he said.