Gross Mortgage Lending Falls 12%

Gross Mortgage Lending Falls 12%Gross mortgage lending is reported to have marked a plunge 12 per cent between March and April, following lenders urge to the coalition Government to address the funding void they consider is holding them back.

Mortgage lending has registered a slip £10.2 billion last month - the lowest April total since 2000. The Council of Mortgage Lenders posted that it had speculated a marginal squeeze because of Easter.

The figure remained largely in line with its prediction of £150 billion in lending for 2010 as a whole.

However, the slowdown was triggered by the continuation of a cumbersome mortgage market with first-time buyers in particular striving to save big enough deposits to make a purchase.

Lenders posted that since wholesale lending - what banks lend to each other - mark a fall in the credit crunch, government backing has extended only 25 per cent of what lenders could offer previously.

"We welcome signs in the coalition agreement that some housing priorities are on the Government's radar. But we still do not know how the incoming Government plans to address the funding gap looming over the next few years in the mortgage market," quoted, Michael Coogan, the Director-general of the CML.

In March lending was recorded to climb 24 per cent, touching £11.5 billion compared from £9.3 billion in February.