According to the Council of Mortgage Lenders there was a 4% fall in September's mortgage lending from banks and building societies. The CML also released details that house purchase lending amounted to 44% and first time buyer mortgages totalled 29%. Re-mortgages are still the most popular. Of the mortgages arranged during the month, almost 50% were in respect of either fixed or capped rates.
Our View
We have been saying for some time that the property market is slowing down. Many houses are taking longer to sell and instead of just one for sale board outside, there are now two or three.
There are still many houses for sale so supply is obviously outstripping demand in at least some of the price brackets. What we have seen is people down-sizing their properties to lower their mortgage payments and release more cash for general living.