CML predicts slow start to the year

Thursday, February 18th 2010

A slow start to mortgage lending is likely to result in an increase over the year, according to the Council of Mortgage Lenders (CML).

Spokesperson for the organisation Bernard Clarke explained that the slow start will be a result of a rush in borrowers at the end of last year due to the stamp duty holiday ending.

This had boosted sales, so for the start of 2010 there may not be a high increase on such figures.

Added to this is the fact that the market is less competitive than it has been in the past, so a slow improvement can be expected.

"We need to see a more active wholesale funding market although it will remain one in which the highest rated mortgage assets will be required," Mr Clarke explained.

Research from Paragon Mortgages seems to agree with these predictions, as 34 per cent of brokers thought business levels would remain stagnant in the first quarter of 2010.

In January, the CML revealed that gross mortgage lending in December last year was up 14 per cent from the previous month.