Mortgage lending in the UK dropped in December to its lowest level since 1999, while net lending fell to nearly £880 million, the lowest total in more than 11 years, according to the British Bankers’ Association.
The UK mortgage market rounded off with a tough year, with net mortgage lending by major banks falling to £20 billion in 2010, compared to £35 billion in the previous year. This was largely attributed to a shortage of money for lending, due to cautious lending policies and the credit crunch.
The outlook for 2011 is similarly dull, with the Council of Mortgage Lenders forecasting that home sales will likely drop by 30,000, to 860,000 units.