A lack of confidence amongst homebuyers has been partly blamed for a further drop in the amount of mortgages approved by lenders in September.
Mortgage lending last month slumped to its lowest September total since 2000, according to the Council of Mortgage Lenders (CML).
Gross lending of £12 billion was 1% down on August and 7% lower than in September 2009. However, there was slightly better news in the form of the quarterly figures. Total lending over the third quarter of 2010 amounted to £37.4 billion, 9% higher than in the second quarter of the year.
Despite this, CML director general, Michael Coogan, said that the volume of lending was unlikely to increase substantially towards the end of the year.
"Funding pressures on lenders remain, and the practical implications of Government and public spending cuts are beginning to emerge, with a resulting impact on consumer confidence," he added.
With the number of mortgages available to homebuyers relatively low compared to a few years ago, some people with aspirations either to take their first step onto the property ladder or to move home have been reluctant or unable to do so.
However, there are still a number of competitive mortgage deals on offer, if you look hard enough. Luckily, Moneyfacts can help make the search for a mortgage deal a whole lot easier.
Our Best Buy charts show all the latest and greatest mortgage deals whether you're a first time buyer or a home mover, and whether you're looking for a fixed rate or variable rate deal.
Alternatively, a mortgage broker such as Mortgage Solvers has the expertise and product knowledge that could make the difference between you managing to secure a mortgage deal or not.
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