The winter weather may be much to blame for the lack of interest from buyers in the housing market.  Despite figures revealing mortgage lending declined between December 2012 and January 2013 in a year to year comparison there was an impressive 11% increase in a year to year comparison for the same time period.  It is according to the Council of Mortgage Lenders (CML) the best start for mortgage lending in the beginning of a new year since 2008.

Paul Smee, director general of the CML, said, “Seasonal factors clearly had an effect on lending figures in January, but it still remains the best start to a year since 2008.

“Mortgage finance is available and lenders are open for business, allowing more borrowers to take the step into home ownership or move house in line with their needs.”

The CML data revealed that 38,300 mortgage loans advanced for house purchases in January.  This was down from the December level of 45,900 but an increase over the 34,600 recorded in January 2012.  Total value for house purchase lending was £5.7 billion.  For the previous month of December 2012 the total value was £6.9 billion and for January 2012 the total was only £5.2 billion.

Peter Williams, executive director of the Intermediary Mortgage Lenders Association, remarked, “In spite of a seasonal lull, this is a positive start to 2013, but it also shows the need for further action to build on this momentum.”

Mortgage lending has remained cheap for borrowers with many lenders not only offering historically low interest rates but also attractive bonus offers such as free legal work and/or valuations.  Remortgages have also remained more affordable but demand had failed to reveal that homeowners are keen to get away from their lender’s risky standard variable rate quite yet.