Mortgages drop to the lowest point in 3 years
Due to the current property market status and tighter lending conditions, mortgages have become difficult to obtain.
During December, homeowners borrowed £22.6bn, this a 21 per cent year-on-year decrease and 25 per cent less than the total borrowing for November.
The Council of Mortgage Lenders put this data forward, confirming that these figures took place simply because of the credit crunch, budgeting lenders' cash flow and disabling consumer confidence.
Director general of the CML team, Michael Coogan commented: 'The credit crunch moved into its fourth month in December and continued to constrain the cost and availability of funds to lenders and, in turn, the cost and number of mortgage products available to borrowers.
'Looking forward, the recent decline in interbank lending rates and the prospect of further reductions in base rates in 2008 should provide some help to the market, although lending volumes are likely to remain weak for the next few months.'
Building societies also witnessed a decrease in advances through December period. The total amount lent fell to £3.73bn, down from £4.1bn in November.
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