Mortgage lending down

Mortgage lending fell in April of this year but is still markedly higher than the same period in 2006.

Figures from the Council of Mortgage Lenders (CML) show that borrowing fell to £28.8 billion in the month.

That is down nine per cent on the £31.7 billion which was borrowed in March but remains 18 per cent higher than figures from April 2006.

It is also the highest ever figure recorded for April but CML officials say that the market is levelling out.

“Lending is still strong, but it does seem to be stabilising in 2007 following its major growth in 2006,” said Michael Coogan, director general at the CML.

“With higher interest rates now beginning to have an impact, the modest slowing in activity that we have been expecting over the rest of the year looks set to materialise.

“Even so, we continue to expect lending in 2007 to be around four to five per cent higher than in 2006,” he added.

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