Mortgage lending down to £12.4bn

The Council of Mortgage Lenders last week revealed that gross mortgage lending in January declined to an estimated £12.4bn.

This was an 8% fall on the £13.5bn seen in December and a whopping 52% year-on-year fall from January 2008.

The CML is predicting there will be £145bn worth of gross mortgage lending in 2009.

If the gross mortgage lending seen in January remains consistent over the year, total gross mortgage lending could be on track to hit around £149bn.

A slight decline is typically experienced between December and January, but this is the lowest monthly total since April 2001.

Bob Pannell, head of research at the CML, says: “Mortgage lending continues to be weak and it would be unrealistic to expect a recovery in lending in the coming months.

“Even when conditions do improve, gross lending will be one of the later measures to recover.”