Property lending has fallen back in the UK and there are now 70% fewer products on the market with buy to let investors finding it hard to secure finance, according to experts.
Indeed, the latest figures from the Council of Mortgage Lenders show that mortgage lending fell by 13% in August compared with the previous month.
The organisation, whose members make up over 98% of lenders in the UK, said that the fall was expected after June and July experienced a surge in lending due to a seasonal increase in activity and rising house prices.
The CML said a total of £12.6 billion was lent for house purchases and remortgages during the month, down from July’s £14.5 billion and a drop of 37% compared with August last year. It is not expecting the situation to change for the rest of this year, with a pick-up in housing market activity checked by continuing funding constraints and a lack of ability or incentive to remortgage.
‘The likelihood of a significant pick-up in lending remains weak, but the prospects for wholesale funding markets are improving. This could result in a gradual easing in constraints on the supply of funding over time,’ said Paul Samter, CML economist.