The number of mortgages to purchase homes in the UK dropped 15 percent in November, compared to the same period in 2009, according to figures released by the Council of Mortgage Lenders (CML).
However, the 44,000 home purchase loans in November 2010 equalled those in the preceding month of October. The value of mortgages in November 2010 stood at £6.3 billion, down 13 percent from November 2009.
While the number of mortgages to first-time home buyers fell 19 percent in November 2010 from November 2009, it rose three percent from October to November 2010, with 16,400 loans worth £1.9 billion.
“It is encouraging to see credit criteria becoming a little more liberal for first-time buyers,” said Michael Coogan, CML Director General. “But the funding and capital constraints on lenders will continue to exert a dampening effect on lending, and criteria are unlikely to loosen substantially.”