These numbers were along the same lines as those from the Council of Mortgage Lenders (CML), which were released earlier this month. They showed that gross mortgage lending fell to an estimated £9.1bn in January, making it the lowest lending figure for that month in a decade. In December 2009, lending was 32 per cent higher at £13.4bn, while in January 2009 the figure was £11.5bn.
Both the CML and BBA put the decline down to the end of the Stamp Duty holiday on 31 December. It is thought that buyers rushed through their property purchases before that date to save on the tax. The heavy snowfall in January also made it difficult for those trying to view property. It is also worth remembering that there tends to be a seasonal decline in lending in January, compared with December.
While lending may have been subdued in January, the year has got off to a more positive start as far as lenders are concerned with more mortgage products available and greater competition in the sub-75 per cent loan-to-value market. The bigger lenders are once again competing for market share and with some lenders starting to raise their standard variable rates, it may be time to think about remortgaging if you have come to the end of a fixed or discounted deal.