The higher cost of borrowing has contributed to a fall in gross mortgage lending during September, according to the latest figures from the Council of Mortgage Lenders (CML).
However, the CML’s figures still do not cover the freeze in financial and credit markets which resulted in Northern Rock’s decline, meaning further falls can be expected in the coming months. The fall is largely blamed on a drop in loans for house purchase, while a more vibrant buy-to-let and remortgage market have helped soften the blow. Gross lending in September reached £30.6bn, well below the £34bn seen in August and only slightly higher than the £29.2bn seen a year ago. However, remortgaging activity has been on the rise, with £11.1bn lent for remortgage during September, up from £1...
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