Mortgage Market Hits Seasonal Slow

• News
• Published: 18 Dec 2009 in Money and Mortgages

The predicted seasonal slowdown in the housing market saw the number of mortgages advanced to customers take a 10 per cent dip in November.

The figure was 14 per cent down on the same month last year, the Council of Mortgage Lenders (CML) said, with the market experiencing a drop "a little larger" than expected.

In total, £12 billion was advanced for mortgages during November, compared with £13.3 billion in October.

However, CML said it did not expect much further change in the next few months, with the market holding steady.

CML economist Paul Samter said: "There is little reason to expect much underlying change in the coming months.

"There could be a modest decline in underlying house-buying activity in early 2010 due to the stamp duty holiday ending, with activity 'bunching' over the last few months of 2009.

"But seasonal factors are likely to be the dominant driver over the next few months."

While there has been a slight increase in the availability of some mortgages, Mr Samter said lending volumes were unlikely to go up, with remortgage rates remaining slow.