Council of Mortgage Lenders says only 42,200 house purchase loans made in August
House purchasing lending in August was down 63% compared with the same time a year ago, according to the Council of Mortgage Lenders (CML).
Just 42,200 house purchase loans were made in August this year - 15,600 of them to first-time buyers - and both the number and value of house purchase loans were the lowest since the CML began collecting monthly data in January 2002.
At just 拢1.9bn, first-time buyers accounted for just under a third of total 拢6bn house purchase lending, typically borrowing 84% of the value of the property and 3.18 times their income, down from 90% and 3.39 in August last year.
There were 26,000 loans to home movers worth 拢4.1bn, down 61% in volume and 64% in value from August last year. The typical home mover advance was 拢126,000 - the lowest since June 2006.
Seventy-four thousand loans for remortgage worth 拢10bn were given, down 20% in volume and 9% in value from August 2007 鈥 the lowest level of remortgaging volume and value since March this year.
Commenting on the government鈥檚 injection of funds yesterday, CML director general Michael Coogan said: 鈥淭he package of measures would have a positive effect, but it will take time for it to feed through to the mortgage market.鈥
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