Mortgage lending down by £120m.

MORTGAGE providers lent about £123m. less last year compared to 2008, latest figures have revealed.

The lack of lending has been described as the main contributor to last year's slowing housing market.

More than £319m. was lent last year, down from about £442m. in 2008, according to Unusualities of Guernsey's year-end conveyance figures.

This latest drop represented a massive dip in lending from 2007, when more than £743m. was lent to property purchasers or owners.

Pierre Blampied (pictured), a director of Savills Private Finance (Channel Islands), said there had been considerable pessimism within the market during the last few years.

However, he believed this had reduced going into 2010.

'The market during 2009 was held back due to the lack of mortgage funding being available and the withdrawal of the 95% loan-to-value mortgage,' he said.

'This is purely the reason for the lack of activity as house prices are today still at all-time highs.'

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