Lending stats distort the picture

Richard Sexton, director of e.surv chartered surveyors, says the year-on-year gross mortgage lending statistics just released by the Council of Mortgage Lenders don’t reflect the state of lending accurately.

He commented: “2010 is such a weak comparator, and inflation is at record highs. The truth is the mortgage market is fighting an uphill battle.

“Insipid economic growth, and restricted supply of credit, are sapping the life from the market and forcing banks to target wealthier borrowers and professional buy-to-let investors. They are in no position to increase their lending.

“Overall lending conditions were at their tightest since February in October. A meagre one in every 100 loans were to borrowers with a deposit of 10% or under, compared to13 in every 100 in 2007.

“Unless the economy gets moving, and the crisis wreaking havoc in the eurozone dissipates, there is a very real chance the first -time buyer market will enter a state of near paralysis.”