It will come as no surprise to read that total mortgage lending in 2009 dropped in 2009. Total lending was £143.7 billion, down by 43 per cent in comparison with the previous ear. However these figures are better than some analysts had predicted.
The good news is that the contractor mortgage market does appear to be recovering. The Council for Mortgage Lenders report that the last month of the year saw the first year-on-year rise in lending since the start of the credit crunch. At £13.7bn, lending was 14% up on November and 3% ahead of December 2008.
CML economist Paul Samter says that while this may have been due to the impending close of the stamp duty holiday for properties under £175,000, there is “every reason to expect a gradual improvement in the latter part of the year”.
This seems to be borne out by comments from Paula John, editor of Your Mortgage, who says that so far, 2010 has been more upbeat for the housing market than many people would have previously anticipated.
“There has been more activity in the housing market, first-time buyer numbers are not dramatically up or down on their historical average, but they have picked up a bit which is always good news,” she commented.
However, she states that people are still “sitting tight” and not wanting to move house because of the 40 per cent minimum deposit that is required for the best home loan deals.
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