Mortgage loans fell sharply in January (24/02/2010)

The total of mortgage loans agreed upon between home buyers and the UK’s largest banks fell sharply in January, according to the British Bankers Association.

The BBA attributes the decline to the fact that many buyers had borrowed in December to beat the reintroduction of a lower stamp duty threshold. Approving 35,000 new mortgages to home buyers last month, the BBA said that figure is down from 46,000 in December.

BBA statistics director, David Dooks, said of the latest data: "It was no surprise to see the January mortgage figures falling back from December, when transactions were being pushed through to beat the end of stamp duty relief.”

Showing a response to the inflated December market and adverse weather conditions which have further impacted it, total mortgage lending fell to just £8 billion in January, its lowest monthly amount in nearly eight and a half years.

"There was a natural reaction in the January figures and the bad weather further suppressed market activity," added Dooks.


By Andy Stern

© Property Owners Directory 2010