Council of Mortgage Lenders of UK has reported a 7% decline in the gross lending to an estimated GBP24 billion in February 2008, from GBP25.9 billion in January 2008, and 6% from GBP25.6 billion in February 2007.
Michael Coogan, a director of Council of Mortgage Lenders (CML), said: We have entered a substantially slower phase in the housing market and there will be ongoing problems in the mortgage funding markets unless the Bank of England makes new, broader based attempts to improve levels of liquidity in the UK.
Demand for mortgages remains strong but cannot be fully met from existing funding. This has led many lenders to reduce their product ranges, increase their mortgage prices and, in some cases, to reduce their lending capacity. As credit conditions change markedly from day to day, lenders will continue to rapidly adapt their products and pricing to match. This is a vital response to the uncertain conditions.