The total amount of funds borrowed in new mortgages dropped back in April.
The Council of Mortgage Lenders (CML) revealed that £10.2bn was lent to both home buyers & other borrowers, 12% less than in the earlier month, marking the lowest figure recorded in any April in the last decade.
Figures from HM Revenue & Customs also highlighted the subdued nature of the property market, showing a slight fall in completed sales in April, down 2,000 from March to 71,000.
In the first three months of 2010, Home sales in the United Kingdom were up 26% compared with the same period last year, although this is still very half the level recorded before the banking crisis years between 2005 & 2007.
The CML pointed out that Easter falling in April this year had led to a seasonal dip in lending, but did recognise that borrowing in the mortgage market was still slow compared with earlier years.
Gross mortgage lending was 6% lower in the first three months of the year compared with the same three months last year.
"There have been signs of increased mortgage availability in recent months, with higher loan-to-value mortgages becoming available & rates falling slightly," said the CML.
"But it remains a difficult market, for first-time buyers without large deposits, & lenders continue to face funding challenges."
Brian Murphy, of the Mortgage Advice Bureau mortgage brokers, highlighted the fact that the recent general election also caused the property market to stay sluggish for the past month.
"In April, plenty of potential buyers held off to see what colour the new government would be & what potential impact there may be on housing & rate of interest owner," they said.
The Bank of England also underlined the subdued outlook for mortgage lenders in the latest edition of its every month Trends In Lending publication, commenting that it was not clear whether lending would show any signs of recovery this year.
"Most major UK lenders continued to expect the stock of lending to select up moderately in the remainder of the year, though some lenders noted the downside risks to their projections," it said.
"Data from the major UK lenders indicate that their approvals for house purchase edged lower in April," it added.
By: Rashid
The Council of Mortgage Lenders (CML) revealed that £10.2bn was lent to both home buyers & other borrowers, 12% less than in the earlier month, marking the lowest figure recorded in any April in the last decade.
Figures from HM Revenue & Customs also highlighted the subdued nature of the property market, showing a slight fall in completed sales in April, down 2,000 from March to 71,000.
In the first three months of 2010, Home sales in the United Kingdom were up 26% compared with the same period last year, although this is still very half the level recorded before the banking crisis years between 2005 & 2007.
The CML pointed out that Easter falling in April this year had led to a seasonal dip in lending, but did recognise that borrowing in the mortgage market was still slow compared with earlier years.
Gross mortgage lending was 6% lower in the first three months of the year compared with the same three months last year.
"There have been signs of increased mortgage availability in recent months, with higher loan-to-value mortgages becoming available & rates falling slightly," said the CML.
"But it remains a difficult market, for first-time buyers without large deposits, & lenders continue to face funding challenges."
Brian Murphy, of the Mortgage Advice Bureau mortgage brokers, highlighted the fact that the recent general election also caused the property market to stay sluggish for the past month.
"In April, plenty of potential buyers held off to see what colour the new government would be & what potential impact there may be on housing & rate of interest owner," they said.
The Bank of England also underlined the subdued outlook for mortgage lenders in the latest edition of its every month Trends In Lending publication, commenting that it was not clear whether lending would show any signs of recovery this year.
"Most major UK lenders continued to expect the stock of lending to select up moderately in the remainder of the year, though some lenders noted the downside risks to their projections," it said.
"Data from the major UK lenders indicate that their approvals for house purchase edged lower in April," it added.
By: Rashid
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