The CML has declared the contraction in mortgage lending "the most severe on record", with mortgage loans down by more than 50% and gross mortgage lending down 55% since 2007.
It said the decline has been driven by constraints on the supply of mortgage credit rather than falling demand and that there is no sign of a return to more "normal" mortgage funding availability in the foreseeable future. CML figures revealed the number of mortgage loans granted in 2008 and 2009 were lower than any year since 1974 at 516,200 and 518,800 respectively. This compared to 1,015,100 loans in 2007 and an average of 1.2m house purchase loans per year in the previous decade. In its News and Views newsletter, the CML predicted 2010 house purchase lending will be similar to ...
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