Mortgage loan dropped to a ten year low in January 2010, this has been figured out by the Council of Mortgage Lenders (CML) and revealed today. Total mortgage lending dropped an estimated amount £9.1 billion within the month, a 32% drop on December’s figure and 21% lower than the last year January. 
However, this downfall was expected at the starting of the year, the down fall of January shifted lending to its lowest level and this is the lowest since February 2000, and brought to ending months of the rising interest rates from borrowers.
The CML stated that the lending aggravated by the traditional post-Christmas due to the flood of buyers to acquire properties before 31st December 2009, the temporary stamp duty holiday end on houses costs less than £175, 000 and it was probably to be the beginning of the quiet period in house marketing.
The group last week unveiled that the lenders had seen a rise in the mortgages number that are advanced for the house buying in December, so the purchasers hurried to contest before the threshold change again to £125, 000 at the beginning of the year 2010.
Paul Samter, the CMLs economist, said today, “We remain in a period of uncertainty for the housing market and economy at large. The market certainly improved over the second half of last year and started 2010 in better shape than most would have predicted twelve months ago.
“More recent developments have been influenced by the end of the stamp duty holiday, and are likely to foreshadow a larger than usual seasonal drop off in activity in the early part of this year.”
The drop occurs regardless of new good deals of cheaper loans from lenders and some more new deals for the borrowers with little deposits, introduced by the lenders.
There has been recorded a flood of launces in recent weeks, while standard variable rates for present borrowers have been increased by some lenders. This situation can increase the remortgaging figures in the up coming months that have been dropping since last spring when the Bank of England base rate was dropped to 0.5%.
The mortgage industry was in better state last year than it is in this year, said by Brian Murphy of mortgage broker Mortgage Advice Bureau.
A lot more products and options have become available in the previous three to four months because the lenders restarted competing for market share. You are still required to have a flawless credit score if you want to secure a loan, this is due to the emergence of more competitive at higher LTVs.
According to CML this is due to the Bank of England will continue to keep lower rates but borrowers must not take this for granted, especially after watching this week’s inflation figures and unemployed data that is lower than the expected.
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