Mortgage lending fell again in February, new figures have revealed.
The mortgage market suffered again in February, with gross lending totalling £9.9 billion - the lowest monthly figure since February 2001.
This also indicated a drop of 15 percent from January and 60 percent compared with February 2008, according to the Council of Mortgage Lenders' (CML) calculations. February generally sees the lowest number of mortgage completions, but the monthly drop is far above the usual January to February fall of three to four percent.
However, the CML said that the total was consistent with the £145 billion of lending it expects members to extend for the whole year. But CML director general Michael Coogan warned that lenders will find it increasingly difficult to provide mortgages as a result of the government's "fractured policy".
"Retail savings are now the predominant source of funding for mortgages. But banks and building societies have seen savings ebb away to National Savings and Investments, which has a negative impact on their ability to lend," he said.
"There are now fewer active lenders in the market, but the government wants them to lend more. At the same time, the government's own savings institution is sucking away the funds that would enable them to do so. Until funding improves, the capacity of lenders to lend will remain constrained."
