Mortgage companies prepare for another difficult year as lending dips to 1980 levels.

(From Western Daily Press)

Mortgage lending looks set to fall to its lowest level for more than three decades during 2011 with first-time buyers particularly hard hit, a trade body has warned.

Net lending is expected to total just GBP6 billion next year, down from an estimated GBP9 billion this year and GBP110 billion in 2006, according to the Council of Mortgage Lenders.

The group said it would be the lowest annual total since 1980, when the mortgage market was smaller, while it would represent the most subdued growth since 1968.

The fall in lending levels is being driven by the ongoing shortage and cost of funds, as well as muted consumer …