Gross mortgage lending plummeted in December, potentially leading to an increase in the number of people seeking a fast property sale.
[UKPRwire, Mon Jan 28 2008] According to the Council of Mortgage Lenders (CML), there was a massive drop in the amount of money lent to mortgage borrowers in the month.
The figure of £22.6 billion is the lowest seen since May 2005 and is a clear sign that people simply are not interested in buying property in the current climate.
It means that more people may attempt to secure a fast property sale in order to get as much money for their property as possible.
"Property prices are falling and the buyers simply do not exist to acheive a quick sale for most homeowners" says Julian King of National Homebuyers. National Homebuyers are the UK's largest quick sale property firm, guaranteeing an offer on each property surveyed.
"Either the vendor has to be realistic about their asking price or arrange for a quick property sale from a commercial buyer" adds Mr King.
"The credit crunch moved into its fourth month in December and continued to constrain the cost and availability of funds to lenders and, in turn, the cost and number of mortgage products available to borrowers," said Michael Coogan, director general of the CML.
The organisation reports that lending was 21 per cent down on December 2006 and a massive 25 per cent down on November. A seasonal fall would normally be around six per cent.
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