CML: Mortgage lending remained subdued in November

The Council of Mortgage Lenders (CML) has today reported mortgage lending remained weak in November.

However, the month is traditionally a quiet one as prospective buyers opt to wait until the New Year to purchase a home.

The number of loans approved for those buying a new home remained flat at 44,000 during the month - a 15% fall on November 2009 levels - when buyers were rushing to beat the end of the stamp duty holiday.

Meanwhile, there was a small rise of 4% in the number of people remortgaging during the month compared with October.

On a positive note, there was a marginal rise in the number of first-time buyers entering the market, with those getting onto the property ladder typically borrowing 80% of the value of their property.

Commenting on today‘s figures, Michael Coogan, director general of the CML, said: “It is encouraging to see credit criteria becoming a little more liberal for first-time buyers.

“But the funding and capital constraints on lenders will continue to exert a dampening effect on lending, and criteria are unlikely to loosen substantially,” he added.

In other news today, the National Association of Estate Agents (NAEA) revealed property transactions slumped to an 8-year low in December.

The severe wintry weather and the traditional slow Christmas period led to sales falling to their lowest level since January 2003.

According to the Association, the average estate agent branch sold four properties in December 2010. This represents the lowest in eight years when the average agent sold two properties per branch.

In November 2010 the average branch sold seven properties.

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