Quiet summer for mortgages

Mortgage lending slumped to its lowest level for a decade last month as activity in the housing market remained muted, according to fresh figures from the Council of Mortgage Lenders (CML).

A total of 11.98 billion was advanced during the month, 1 per cent less than in August and the lowest September figure since 2000. It was the second consecutive month during which lending levels fell, as the housing market failed to benefit from its traditional summer bounce.

CML warned lending volumes may remain subdued for the rest of 2010. Housing activity remained muted over the summer, as potential buyers waited for the outlook for the housing market to become clearer.