The Council of Mortgage Lenders (CML) has reported that only 41,400 home loans were granted in January to borrowers in the UK. That was 26% fewer than in December 2014 and 16% down from January last year. The number of loans made to first-time buyers was also at its lowest monthly figure for 21 months at 19,000.However the Bank of England believes that the current lull in mortgage approvals will start to pick up again in the coming months as the number of new loans approved but not yet lent, has started growing again.The director general of the CML, Paul Smee, said “The traditional beginning-of-year seasonal lull in lending is slightly more prominent in house purchase lending than in previous years, especially in comparison to the particularly strong levels at the start of 2014.“Affordability constraints remain a factor for would-be borrowers, but we are still projecting lending to pick up over the next few months,”
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