The Council of Mortgage Lenders (CML) reports that gross lending for April 2010 has declined. I wrote only last week in my blog that lenders and buyers could sigh in relief at the mortgage approval figures for March and the preceding nine months only to find myself writing quite the opposite today.
The figures published by CML show that gross lending was at £10. 2 billion in April compared to £11. 6 billion for the month of March, this is down by 12% and is the lowest April since 2000. Click here to read the full report.
There are a number of factors that may have affected this, and they include the prospect of a new government, the Easter break and the basic fact that it remains a difficult market. CML say the lending market is still on track, however, to lend the amount forecast for this year, of £150 billion.
There continues to be instability within the mortgage and property market. It is still difficult for first time buyers to get on to the property ladder with large deposits required by many lenders and tight criteria. It is also uncertain as to when the interest rates will rise but it is expected that we will not have to wait too long. This will put a squeeze on many households and will make it even harder for first time buyers, who are saving every penny towards a deposit, to cope with large mortgage payments.
It will be interesting to see whether mortgage lending figures will rise over the coming months or whether the market will stagnate for a while as we wait to see what changes are implemented by the new coalition government, affecting the property market.