.
The data shows that gross mortgage lending dropped from 268,720bn in 2018, to 267,552bn in 2019, a 0.4% fall.
Additionally, mortgages in arrears declined, falling by 8.6%, from 82,350 to 75,280 over the same time frame.
Meanwhile, house prices in the UK rose year-on-year, from 214,178 to 215,925, a 0.8% rise.
Mortgage possessions also increased between 2018 and 2019, up by 15.9%, from 6,900 to 8,000.
Looking at the number of house purchase loans, first-time buyer figures dropped 0.6% on an annual basis, from 353,000 to 351,000.
Homemovers fell by 2%, from 351,000 to 344,000, and buy-to-let landlords dropped by 3.2% from 72,200 to 69,900, between 2018 and 2019.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “2019 was a tricky year for lenders as they competed for a limited amount of business.
“Concerns over the ongoing Brexit saga and high stamp duty at the upper end of the market combined to prevent people from moving.
“Affordability in London and the South East continued to be constrained with borrowers struggling to pull together big deposits and prove they have the income to support substantial mortgages.
“It doesn’t look as though the market will change significantly this year with most predictions suggesting the same level of lending will be done.
“We expect more innovation from the smaller players, targeting those borrowers who may be struggling to get the funding they need, perhaps because they’ve missed a mobile phone payment or similar.”
Miles Robinson, head of mortgages at Trussle, added: “The fall in mortgage lending highlights what we’ve known for some time; that there is a real lack of suitable properties at the more affordable end of the market.
“When you also consider the closure of the government’s Help To Buy ISA – there will be even more pressure on the new Chancellor Rishi Sunak to deliver for first-time buyers in next week’s Budget.
“Moving forward, while we’re yet to see the impact of uncertainty linked to coronavirus on the housing market, if lending continues to slow – the time might be coming for the regulator to consider a gentle easing of restrictions around affordability.
